Equipment provider Emeco Holdings Ltd
(ASX:EHL) says it expects to report net profit of between $40 to $41 million for the 2010 financial year, at the lower end of its previous guidance of $40 to $44 million.
CEO Keith Gordon says the 2010 financial year has been a challenging year for many companies in the mining services sector as they were emerging from a severe downturn.
The company has also undertaken a six month review of the business and decided to exit civil infrastructure markets to focus on servicing its mining customers.
Emeco says the completion of the review will enable it to refocus on the core mining markets and customers in Australia, Indonesia and Canada, where the outlook for bulk commodities, gold and oil sands is robust.
The company says it will off load the Victorian Rental business and restructure the Australian Sales and Parts business.
This will give rise to goodwill impairments of approximately $37 million and other impairment and restructure charges of up to $6 million pre-tax.
Full year Emeco results are expected for release on August 25.
Emeco Holdings reported a profit of $13.27 million for the year ending 30 June 2009.
