24/11/2009 - 11:42

Monadelphous tips stable 09/10 revenue

24/11/2009 - 11:42

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Monadelphous has tipped 2009/10 revenue to remain stable with the energy and infrastructure markets expected to insulate the engineering company.

Monadelphous tips stable 09/10 revenue

Monadelphous has tipped 2009/10 revenue to remain stable with the energy and infrastructure markets expected to insulate the engineering company.

In an address to shareholders at the annual general meeting, managing director Robert Velletri said the company has entered the 2010 financial year with a healthy forward workload.

He said that since June, Monadelphous has secured contracts worth a collective $400 million.

"At this stage the company expects full year sales revenue to be similar to last financial year," Mr Velletri said.

Monadelphous recorded a 17.6 per cent lift in the 2008/09 revenue to $1.23 billion, while net profit was up 6.8 per cent to $74.2 million.

Mr Velletri said that the heightened competitive environment is expected to continue to put pressure on margins, however Monadelphous' margins appear to be holding in the first half of 2009/10.

"Energy and infrastructure markets in 2009/10 are expected to insulate us from the full effects of the softness in our traditional resources markets," he said.

"Having said that, in more recent months a recovery in commodity markets and improving customer confidence, particularly in the bulk commodity markets of iron ore and coal, provides us with cautious optimism for the medium to long term outlook for these sectors."

Shares in Monadelphous dropped 20 cents to $13.07 at 14:21 AEDT.

 

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