Downer EDI logo

DOW - Downer EDI News Story

A$5.47 -0.1  -1.4%

Last Trade - 14/05/21

Sector
Industrials
Size
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 
industries. 
    It bid A$1.27 billion for cleaner-caterer Spotless Group 
Holdings  SPO.AX  last March, eventually winning over 85 percent 
of Spotless shares.  urn:newsml:reuters.com:*: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 
Pullin) 
 ((sandhya.sampath@thomsonreuters.com ; +91-80-6749-8695; 
Reuters messaging: 
sandhya.sampath.thomsonreuters.com@reuters.net;)) 
 
Keywords: DOWNER EDI OUTLOOK/
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.