Resource sector services company Sedgman Limited (ASX:SDM) has become the latest company to cut its guidance amid a slowdown in the sector.
The company now expects to post a net loss of between $5 million to $7 million in fiscal 2014, down from an earlier forecast of a profit between $3 million to $6 million.
Sedgman’s market conditions and operational update reveals challenging and subdued conditions in the mining services sector.
The company says it is positioning itself for improving market conditions in the medium term and has also today been awarded a $US134 million contract.
Today’s downgrade comes after Lycopodium Limited’s
(ASX:LYL) shares plunged at the end of last week after lowering its annual profit guidance.
The company now expects to post a net profit of $4 million in the current financial year, down from an earlier forecast of $9.5 million and down from last year’s profit of $22.5 million.
Sedgman reported a net loss of $6.7 million in the first half of the 2014 financial year.
