Watpac Limited
(ASX:WTP) has slashed $30 million in costs from its balance sheet following an earnings downgrade in May, according to media reports.
But CEO Martin Munro is upbeat about opportunities in the mining services sector, telling media the cost-cutting was part of a renewed focus on mining services, which delivers the company $500 million per year in revenue.
Mr Munro says the mining sector has slowed down and that has impacted the business over the past four years.
He says there is still a flow of ongoing projects and that the $30 million reduction in operating overheads was a significant proportion of Watpac's $1.5 billion annual turnover.
Watpac delivered a net profit of $1.3 million in the first half of fiscal 2013.
