28/02/2013 - 14:14

Matrix hits new low

28/02/2013 - 14:14


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Matrix hits new low
The Matrix factory at Henderson

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.



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