Macmahon Holdings Ltd
(ASX:MAH) has sent out a profit warning, having identified financial performance issues with its construction business.
Following a review of the September quarter results the engineering company has updated its forecasts and expects to break even in the last six months of 2010.
Macmahon advises its construction business has won less work than expected resulting in lower construction revenue.
In addition issues regarding a rail contract in Western Australia have impacted the costs of completing the project and the expected returns.
CEO Nick Bowen says this is a disappointing and unacceptable result for the company and a full analysis is being undertaken to improve the performance of its construction business.
Profit in the second half of the year is now anticipated to be in excess of $20 million, on the back on continuing performance from the mining business and an improved result from construction.
Macmahon Holdings posted a profit of $38.8 million in the year to 30 June 2010.
