Walter positive on outlook

WALTER Diversified Services today released its expected earnings for the 2008 financial year, which while up 40% from last year were hit by an onerous contract it inherited from one of its acquisitions.
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Walter Mining men at work.

Angie Tomlinson

Net profit after tax (post significant items) for the 2008 financial year is expected to be $A17–17.5 million. Revenue is expected to hit $285 million.

While WDS's newly acquired McCormick business is expected to be profitable in 2008, its results are lower than expected due to a contract with cost overruns of about $2.1 million pre-tax. The contract is programmed to finish in the first half of 2009.

Despite this WDS said positive conditions prevailed for its divisions, with exposure to the high growth markets of coal, coal seam gas, and water and energy infrastructure.

For the 2009 financial year and beyond, WDS is expecting buoyant end market conditions for Walter Mining.

WDS currently has about 60% of its 2009 financial year revenue target secured and expects this figure to reach 70% by the end of the 2008 financial year.

The current order book stands at $A350 million.

WDS was trading up 1.85% at $2.75 mid-morning.

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