Shares in Matrix Composites and Engineering have plunged to their lowest level since the company listed on the ASX in 2009, following the release of a major earnings downgrade.
The Henderson based manufacturer said today it expected its net profit for the year to June 2013 to be just $1 million, compared to an earlier forecast that profit would be in a range from $6.6 to $10.9 million.
It also expected revenue to be $145 million down from earlier guidance of $165 to $175 million.
Its share price fell 26 cents on the news and is currently trading at $1.46 its lowest price since soon after it began trading in 2009.
The company also announced today its half year results with revenue down 2.3 per cent to $81.6 million and a net profit of just $527,000.
Management blamed delays in production, weaker than expected sales and a change in working patterns for the results.
There was some good news for Matrix with its order book growing US$37 million from the first to second quarter of the 2012-2013 financial year.
Matrix manufactures, tests and services a range of oil and gas and resources sector engineering products.
Matrix has in the past won many accolades including the inaugural Australian Gas Technology innovation 2012 award for a foam insulation cooling product used in liquid natural gas pipes.
