Downer EDI swings to half-year loss

Train builder Downer EDI’s half-year loss follows one-time charges including a mining impairment and rail writedowns.

A Downer EDI rail workshop.

Engineering contractor and train builder Downer EDI swung to a half-year loss as it recorded one-time charges including an impairment of goodwill in its mining business and writedowns linked to a freight rail divestment.

The company (DOW) reported a net loss of $11.1 million for the six months through December. That compared with a profit of $78.2 million in the year-earlier period.

Downer said it’s bottom line was weighed by $126.3 million in significant items.

Still, Downer lifted its interim dividend to 13 cents a share, from 12 cents a year ago, as it recorded a 79 per cent jump in underlying earnings before interest and taxes.

Downer, which has been repositioning its business to service increased investment and outsourcing in areas such as roads, rail, public transport and defence, said it expects underlying profit of $295 million, before minority interests for the full fiscal year, including profits of $202 million for Downer and $93 million for Spotless, of which it owns 88 per cent.

Dow Jones Newswires