News: Ausenco shares plunge on profit scare

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    Shares in Ausenco Limited (ASX:AAX) had lost almost a third of their value in morning trade after scaring investors with a profit warning. 


     


    The engineering group has blamed soft market conditions and contract specific issues for an expected drop on its profits. 


     


    Ausenco now expects to generate revenues of between $564 million and $661 million and a net profit of between $29 million to $41 million in fiscal 2013, well under market consensus levels. 


     


    The company is currently completing a review of its business performance this year and expects to flag its full year performance expectations in late August 2013. 


     


    Ausenco says it has initiated a number of overhead cost saving programs and is right sizing all areas of its business to tackle the current market conditions. 


     


    Ausenco posted a net profit of $41.4 million in the 2012 financial year.

 
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