NRW Holdings tips lower H1 profit

Shares in NRW Holdings fell as much as 21 per cent after the mining and civil services company forecast a lower net profit of $15 million for the first half of 2009/10.

The latest profit guidance compares to a net profit result of $19.8 million reached in the six months to the end of December 2008.

Shares in NRW dropped 35 cents, or 21 per cent, to a low of $1.32 before rallying to $1.385 at 11:50 AEDT.

NRW reiterated that it expects earnings to be weighted towards the second half of the 2010 financial year, and that it remains confident of a 20 per cent revenue growth over the 2009 financial year.

It has also projected a full year net profit after tax of between $33 million and $38 million.

NRW reported a net profit of $31.7 million for the 2009 financial year.

"NRW's Directors and management remain confident on the outlook with the tendering pipeline standing at $2 billion and with recent significant contract awards, the company's forward order book stands at a record $600 million," NRW said today in a statement.