Macmahon shares plummet

Macmahon Holdings shares plummeted 40 per cent this morning after the company cut its earnings estimate in half for 2012-13 and chief executive Nick Bowen resigned.

Shares for the company were down 21 cents to 39 cents in early trade as net profits after tax were estimated to be between $20 million to $40 million this year, The Sydney Morning Herald reported.

The company, which is 20 per cent owned by Leighton Holdings, has blamed earthworks productivities at its Hope Downs 4 Rail Earthworks contract in Western Australia, which was under review, and ‘‘increased uncertainty about the outlook for new construction work given recent market volatility’’ for the profit warning.

Trouble for the company started in August of last year when it posted a net profit of only $1 million, a drop of 97.2%.

Mining chief operating officer and former chief financial officer Ross Carroll had been elevated to CEO and managing director after six years with the company.

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