Emeco books $600k H1 net loss

One-off impairment charges mostly attributable to operations in North America have sunk Emeco Holdings' half-year earnings to a $600,000 net loss.

Earlier this month, Emeco flagged that it will exit its European operations and consolidate its North American business, after finding suitable returns would not be likely.

In its interim report released today, Emeco said the $600,000 net loss compared to the previous corresponding period's $25.7 million statutory net loss.

The net loss for the first half of the 2010 financial year included a one-off, non-cash impairment charge of $14.3 million.

The company's operating net profit was in line with expectations of $13.6 million, down from $18.6 million.

Revenue for the period dropped 32.7 per cent from $218.4 million to $208.5 million.

"The operating environment in the first half has been challenging, but we are now seeing a turnaround in all our core markets and increasing demand for our mining equipment as our customers look to take advantage of the improved outlook for commodity prices," Emeco chief executive Keith Gordon said.

"Although a number of mining projects that have committed to utilising Emeco's fleet have incurred short term delays, momentum has been building towards the end of the half and these projects are now coming on line."

The directors have not declared an interim dividend and reaffirmed the company's full-year net profit guidance of between $40 million and $44 million, prior to restructuring and impairment charges.

Shares in Emeco shed three cents to 70.5c at 14:11 AEDT.