The contractor said it expected growth of 10-15% for fiscal 2009, down from the 20-30% targeted in August.

Macmahon chief executive Nick Bowen said the new forecast meant full-year profits were now expected to be between $54 million and $58 million.

“We currently have some $1.3 billion of work already secured for 2009, and where we finish in June next year will depend on our success in securing new work in the next two to three months,” Bowen said.

He said the most critical issue was the timing of new work. He said that while the tender pipeline was still strong, the award and start-up of new projects was taking longer and longer.

“There appears to be no common reason for the delays, with evidence of regulatory and government approvals taking longer, customers spending additional time evaluating projects and project financing, which has become more difficult for the smaller miners and even some state governments,” Bowen said.

“The other challenge is future work flows. Our business success relies on a steady stream of new work. At this stage our major mining customers are indicating that there is no material change to their short-term plans, although a number are reviewing their medium to long-term projects.”