Engenco has downgraded its profit expectations for the 2011 financial year, announcing it now expects to earn between $3 million and $5 million after tax.
The company, formerly known as Coote Industrial, had previously flagged a profit range of between $4.5 million and $7 million.
"The key reasons for the guidance revision include a combination of lower than expected revenues in certain business segments and delays in the delivery of goods for which firm orders have been received due to supply chain disruptions," Engenco said in a market update released to the ASX today.
"In regard to the latter, the deferred revenues are simply a mater of timing and will largely be reflected in the first quarter of FY2012.
"Significantly, Engenco has continued its return to profitability in the second half of FY2011 which is an important trend factor in the ongoing turnaround of the company."
Engenco said it remained confident of its future opportunities and prospects, and was looking forward to a significantly improved performance in FY2012.
At 12:08PM Engenco shares had gained three per cent, to trade at 10 cents.
