Mining services group Bradken has reported a full year loss of $241.3 million after costs from a major restructure and asset writedowns dragged it into the red.
Underlying earnings before interest, tax, depreciation and amortisation met company guidance at $136.1 million, down 21 per cent on 2013/14.
The company was hit by cost of merging four of its businesses, closing under-performing manufacturing facilities and writedowns related to a drop in demand.
Bradken, which made a net profit of $21.5 million for the previous corresponding period, said sales revenue dropped 15 per cent to $965.9 million and that it won’t pay a dividend.
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Shares in the company behind the Cochlear implant have fallen sharply with investors disappointed by its annual profit.
Cochlear shares were $12.22, or 13.58 per cent, lower at $77.82 at 1035 AEST.
The company missed market expectations in terms of its net profit and sales results for 2014/15.
Net profit rose 56 per cent to $145.8 million in the year to June 30, from $93.7 million, while total revenue was up 15 per cent at $925.6 million thanks to record sales.
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Cochlear’s forecast of a rise in net profit to between $165 million and $175 million during 2015/16 also disappointed analysts.
Engineering construction group WorleyParsons is facing a $200 million goodwill assets writedown.
The company on Tuesday flagged the non-cash impairment of goodwill after a review of its asset carrying values.
“This comprehensive review will reflect the expected ongoing challenging market conditions and will be finalised around the time of the full year results release, scheduled for 26 August 2015,” the company said in a statement.
WorleyParsons announced 2,000 job cuts in May following a drop in oil prices.
