Downgrading its full year profit guidance, engineering company WorleyParsons saw its shares plummet today.
The company’s shares have fallen over 25 per cent to $AU15.75 following the announcement on Wednesday that it has revised its FY14 guidance down to between $260 million and $300 million.
At WorleyParsons’ annual general meeting in October it reiterated guidance for FY2014 of increased earnings compared to the net profit after tax of $322 million achieved in FY13.
“After considering our current trading results and having experienced a delay in upturn in our markets the company is issuing revised guidance,” it said in a statement.
WorleyParsons said revenue from professional services had declined compared to last financial year and it will be implementing “a rigorous cost reduction program across the entire group”.
However any benefits emerging from the program are not expected to be realised until the second half of next financial year.
WorleyParsons chief executive Andrew Wood said he remains positive the company is well positioned for medium term growth.
“Notwithstanding the impacts weaker than expected market conditions are having on our performance, the cost reduction program we are implementing together with the momentum from recent contract awards should position us for medium term growth,” Wood said.