NRW Holdings says Fortescue Metals Group's decision to defer $1.6 billion of capital expenditure in the Pilbara will result in a $100 million hit to its revenue.
The Perth-based contractor said it expected revenue to come in at $1.2 billion for the 2013 financial year in the wake of Fortescue's announcement, down from previous forecasts of $1.3 billion.
Fortescue announced earlier this week that it was slashing hundreds of jobs across the Pilbara and defering $1.6 billion in capital spending as it scaled back its ambitions to expand production capacity to 155 million tonnes of ore per year.
NRW said current civil works for Fortescue, including at Anderson Point and the Solomon Spur project, would run through to completion.
"While disappointed at developments, NRW is however in a position to mitigate any potential impact through the demobilisation of predominantly hired equipment and subcontract labour," the company said in a statement to the ASX.
"NRW also intends to redeploy the balance of its owned plant to other current projects.
"With regard to directly employed staff and participants win indigenous joint ventures; NRW is working with Fortescue to effectively manage an orderly transition, so as to limit disruption to operations."
Fellow engineering contractors Calibre Group, RCR Tomlinson and Forge Group have all previosuly said they did not expect any material impact from the deferral.
NRW stocks were down 4.4 per cent at 1:12PM, trading at $2.13.