Shares in Watpac Limited (ASX:WTP) retreated yesterday after the property developer flagged a hit to its earnings of between $60 million and $90 million.
Watpac says its full year result has been impacted by weak conditions in the housing sector, forcing it to sell down properties proposed for development, resulting in an impairment charge.
Earlier this year Watpac forecast 20 per cent earnings growth but now says in order to achieve this it must resolve a number of claims across several of its projects.
The company says this is not unusual in the current economic climate in Australia, where payment terms are generally being extended and there has been an increase in claims disputes.
Shares in Watpac retreated 13.95 per cent on Thursday, closing at $0.74.
In the first half of its 2012 financial year Watpac generated a net profit of $4.9 million.
