NRW Holdings Limited
(ASX:NWH) has outlined the anticipated impact of Fortescue Metals Group Limited’s
(ASX:FMG) recently announced cost cutting measures.
Based on the loss of the Fortescue revenue stream the mining services company has now revised its secured revenue for the current financial year to about $1.2 billion from its last forecast of $1.3 billion.
The company has also lowered its expected annual revenue growth to 15 per cent, from guidance of up to 20 per cent given last month.
NRW says it is disappointed with the developments but will manage the impact through the demobilisation of hired equipment and subcontract labour.
Fortescue outlined plans to cut staff, spending and its expansion earlier this week in response to volatile market conditions and uncertainty over future iron ore prices.
NRW Holdings improved its net profit by 136 per cent to $97 million in the 2012 financial year.
