Earth moving equipment supplier Emeco Holdings Ltd
(ASX:EHL) has downgraded its earnings expectations for the year reflecting a slower than expected ramp up of activity.
The company expects to post net profit after tax for fiscal 2010 of between $40 million and $44 million before restructuring and impairment charges.
Emeco says it expects an impairment charge of $14 to $15 million after tax on the carrying value of the global rental fleet and a restructuring charge of up to $9.5 million as a result of its decision to exit its European operations.
Emeco says despite the reduced profit expectations, operating conditions remain reasonable with Western Australia and Queensland in particular continuing to evidence a sustained recovery.
Emeco Holdings posted a profit for the year to June 30, 2009.
