Perth-based Global Construction Services today announced a range of restructuring measures including branch closures and staff redundancies in response to weakness in its residential and commercial divisions.
The company said its performance in the last quarter of the 2012-13 financial year was not expected to achieve the increases previously forecast.
It said underlying profit in the second half of FY13 was expected to be in the range of $20 million to $23 million.
As part of a response to reduce costs the company announced the closure of two of its residential branches, resulting in an undisclosed number of redundancies.
The restructure leaves it with two branches - in Wangara and Bunbury.
The company cited the weakness of the housing market as the reason for the consolidation.
GCS’s commercial division and its resource and industrial division fared better, but the company cited ongoing delays in project awarding and start up as part of the reason for the earnings downgrade.
It also announced “several cost reduction initiatives” had been undertaken in the commercial division in response to market activity.
Looking forward GCS said it “maintains a disciplined approach to its balance sheet” and that “operating and capital expenditures are being closely regulated”.
The company, led by Enzo Gullotti, expects that “these operational decisions and the Board’s ongoing commitment to repositioning its resources to the current economic conditions will improve GCS Group’s competitiveness and deliver expected improvements in financial performance”.