Australia's Worley flags bigger earnings hit from Iran war, warns on currency drag

Worley

Yesterday 04:16

    June 25 (Reuters) - Australia's Worley WOR.AX on Thursday nearly doubled its projected full-year earnings hit from the Middle East conflict due to lingering project delays, and also warned a stronger local currency would also weigh on its results.
Shares of the engineering firm slumped more than 10% to log their biggest intraday percentage drop in four months.

Here are a few details:
The Sydney-headquartered firm has now raised its full-year underlying operating earnings impact to A$60 million ($41.36 million), nearly double its previous estimate of A$30 million-40 million
The downgrade adds to a series of profit warnings from antipodean firms as the fallout from the Middle East conflict reverberates through global supply chains, driving inflation and altering corporate spending and earnings.
The protracted conflict continues to stall existing projects, with no cancellations so far but delays in new project awards and commencements, the company said.
Worley also cited the strengthening Australian dollar AUD=D3, which in early May reached a near four-year high, as a potential drag on its earnings. The company flagged an additional A$50 million translation impact on reported annual underlying operating earnings. AUD/
Shares of the firm fell as much as 10.7% to A$10.96, logging their biggest intraday percentage drop since February 26. Stock is ranked among the top decliners in the benchmark ASX200 .AXJO.
($1 = 1.4507 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))