Provider of services to the resources and energy sectors WorleyParsons Ltd
(ASX:WOR) has issued an earnings downgrade today after experiencing significant weakness in its US operations.
The company says it now expects net profit after tax for the 2010 financial year to be in the range of $280 million to $320 million.
This compares to previous guidance of between $320 million and $335 million profit.
WorleyParsons says its US power operations have been adversely effected by decreased demand and increased legislative uncertainty concerning the treatment of carbon.
The company says the market for its services in the US domestic refining and petrochemicals industries has weakened significantly.
However WorleyParsons says it is encouraged by increasing activity in a number of regions and customer sector groups and says it is confident that its medium-term and long-term prospects remain very positive based on its competitive position and its strong financial capacity.
WorleyParsons posted a profit of $390.5 million for the 2009 financial year.
