Bradken Limited (ASX:BKN) has downgraded its expected full year profit and earnings guidance because of higher costs and fewer sales in its rail division.
The mining products provider expects to generate a net profit of between $95 million and $102 million and earnings of between $210 million and $220 million.
The anticipated result has been impacted by a $35 million hit to its rail division sales and a $16 million increase in the division’s costs.
Bradken says the impacted projects will be finished by the end of the current financial year and costs are expected to return to normal levels in the following financial year.
In the first half of the 2012 financial year Bradken reported a net profit of $43 million.
