The company now hopes to generate between $95 million and $102 million in net profit after tax for the period, which represents a 13% midpoint growth over the 2011 financial year.

It forecasts full-year earnings before interest, tax, depreciation and amortisation of between $210 million and $220 million, a 10% midpoint growth period-on-period.

Last year Bradken predicted a 40% year-on-year jump in NPAT for 2012 and forecast EBITDA for the financial year to spike by 25-30% over the previous period.

Bradken attributed the downward guidance to factors in its rail division including a one-off increased cost of $16 million during the period and a reduction in sales volume of $35 million.

It said the reduced sales volume was due to two contracts being executed in the period which required new designs for production, causing a delayed start to manufacturing and increased rework and warranty costs.

The company said the inclusion of new parts suppliers caused delays and rework costs and flow-on effects from both production issues, which caused liquidated damages for projects further downstream.

“The affected projects will be largely completed by June 30, 2012 and costs are expected to return to normal levels in the 2013 financial year,” the company said in a statement.

“All other Bradken businesses continue to perform strongly and generally in line with previous guidance.”

Bradken said gearing at the end of June was forecast to be lower than the half-year result, with net debt close to twice the EBITDA.

The company’s mining products division continues to meet forecasts despite its new Get product range lagging by three months due to bottlenecking in tooling and production.

Meanwhile, its industrial division suffered from lower demand during January and February but returned to forecast levels for the rest of the year, while its engineered products division continued to meet forecast.

Bradken reported FY2011 NPAT after minority items of $87.1 million, up 24% on the previous year’s $70.4 million, and EBITDA of $196.1 million, a 17% improvement on 2010.

Bradken shares slipped 11.1% to $7.52 in Friday's afternoon trade.

This story first appeared on ILN's sister publication MiningNews.net.