Aurizon Holdings Limited
(ASX:AZJ) will incur more write-downs after lowering the value of its assets and projects and slashing jobs to tackle softer mining conditions.
Australia’s largest rail freight operator has warned it will book pre-tax write-downs of between $352 million and $382 million in the current 2014 financial year.
The latest impairments of between $130 million and $160 million add to $222 million of previously announced write-downs incurred in the first half.
Aurizon says the latest write-downs reflect the outlook for the domestic and global coal markets, the deferral or cancellations of capital projects and a further review of strategic assets.
CEO Lance Hockridge says the move represent a comprehensive response by the company amid a more subdued outlook for the resources sector.
Separately, the company has confirmed it expects annual coal haulage tonnages of between 207 million tonnes and 212 million tonnes.
Shares in Aurizon Holdings fell 0.8 per cent to close at $4.96 following the announcement.
Aurizon Holdings reported a net profit of $107.3 million in the first half of the 2014 financial year.
