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DOW - Downer EDI News Story

A$5.47 -0.1  -1.4%

Last Trade - 14/05/21

Mid Cap
Market Cap £2.11bn
Enterprise Value £3.10bn
Revenue £6.58bn
Position in Universe 133rd / 1913

UPDATE 1-Australia's Downer EDI to write down mining goodwill in interim results

Sun 4th February, 2018 11:36pm
(Adds full-year guidance, background and share movement) 
    Feb 5 (Reuters) - Australia's Downer EDI Ltd  DOW.AX  said 
on Monday it would book a goodwill impairment charge of A$77 
million ($61 million) for its mining business in the half year 
to Dec. 31 2017. 
    The mining contractor said the impairment of goodwill was 
due to non-renewal of two material contracts and delays in 
securing alternative contracts. 
    However, Downer said the non-cash charge will not have any 
impact on existing operations or guidance for fiscal 2018. 
    The company said it expects 2017/18 underlying net profit 
after tax and before amortisation of acquired intangible assets 
of A$295 million before minority interests. 
    Downer has been diversifying away from mining services to 
reduce its reliance on the sector, buying companies in parallel 
    It bid A$1.27 billion for cleaner-caterer Spotless Group 
Holdings  SPO.AX  last March, eventually winning over 85 percent 
of Spotless shares.*:nL3N1GX4YE 
    Downer shares were trading 2.4 percent lower at 2313 GMT, 
while the benchmark index  .AXJO  was 1.5 percent lower. 
($1 = 1.2647 Australian dollars) 
 (Reporting by Sandhya Sampath in Bengaluru; editing by Richard 
 (( ; +91-80-6749-8695; 
Reuters messaging:;)) 
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