Shares in Cardno Limited
(ASX:CDD) slumped almost 20 per cent yesterday after warning tougher than expected market conditions will result in a softer than expected first half performance.
The engineering company has forecast a first half net profit of between $36 million and $40 million compared to last year’s first half result of $36.1 million.
Managing Director Andrew Buckley has blamed the guidance on difficult conditions in Australia, the impact of Hurricane Sandy in America’s North East, US elections and one-off restructuring costs to reduce overheads.
However, Mr Buckley believes the company is well placed to ride out the conditions through its diversity, focus on stronger markets, recent acquisitions and pipeline of potential acquisitions.
Shares in Cardno slumped 19.2 per cent on Tuesday to close at $6.30.
Cardno reported a net profit of $74.2 million in the 2012 financial year.
