Macmahon downgrades growth forecast

Mining contractor Macmahon Holdings has downgraded its annual growth forecast for 2009 to between 10 per cent to 20 per cent growth as the economic crisis delays projects.

Chief executive Nick Bowen says Macmahon's business success relies on a steady stream of new work.

"At this stage our major mining customers are indicating that there is no material change to their short-term plans although a number are reviewing their medium to long term projects," Mr Bowen told the annual general meeting today.

"The message from governments is they want more infrastructure built faster, which is good news for Macmahon.

"As long as these conditions remain then our growth prospects look reasonable, but time will tell."

Macmahon said in August that it expected annual growth for fiscal 2009 to be about 20 per cent to 30 per cent.

"We now believe that growth this year will be more likely in the range of 10 to 20 per cent," Mr Bowen told shareholders.

Full year profit at that growth rate would be about $54 million to $58 million, with 40 per cent in the first half and 60 per cent in the second, he said.

"Despite the current economic climate, Macmahon is still a growing company, with excellent long term prospects and we expect to see growth maintained in future years."

Macmahon has $1.3 billion of work secured for the 2009 financial year.

Macmahon Chairman, Richard Carter also told shareholders he plans to retire at next year's AGM after seven years with Macmahon as a director and Chairman, while fellow board member, Malcolm Kinnaird, who has been a director since 2004 intends to retire before the next AGM.

"The Board has commenced a process to source new directors and we are also looking at how the Chairman's position should be filled," Mr Carter said.

"I would like to say that I remain very proud of this company and its capacity to grow and adapt to changing circumstances."