MINING SERVICES COMPANY PROFIT SLUMPS 60 PER CENT

MINING SERVICES COMPANY PROFIT SLUMPS 60 PER CENT

ASX-LISTED Industrea (IDL) has predicted its net profit after tax (NPAT) dropped by more than 60 per cent in the 2012 financial year.

The mining products and services company expects NPAT to range from $14 to $19 million in the year to June 30, 2012.

In a sign that the current mining boom is not all one-way profit-making, the company blames a $19 million jump in tax and depreciation expenses for the “material variation” in NPAT guidance provided back in May. IDL had predicted an FY12 net profit of between $40 and $45 million.

IDL anticipates revenue will remain steady at $370 to $375 million, while earnings before interest, tax, depreciation and amortisation should have jumped by at least 210 per cent to between $115 and $120 million.

CEO Robin Levison (pictured) is not fazed by the hit to NPAT and forecasts a more efficient and profitable future.

“We are confident of achieving a stronger revenue performance in the second half and that full-year profit will lift given the underlying strength of the markets we operate in – and the continuing improvements being made to our businesses’ operational efficiencies,” he says in an ASX statement.

Actual results are scheduled to be released on August 23. IDL shares fell slightly to $1.25 per unit.

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