UGL has reported a slump in its full-year profit, with the engineering and property services company saying its past performance was adversely affected by skills and labour shortages while its outlook would be dented by an expected slowdown in resources and infrastructure projects.
UGL's full year net profit dropped by 15 per cent to $134 million in the year to June 30. The result included $34 million costs relating to acquisitions and restructuring.
Underlying net profit in the year to June, which excludes one-off financial items, was $168 million, up two per cent.
The weakest division last year was Infrastructure, which suffered a 30 per cent earnings decline.
"The weaker than anticipated contribution was a result of the challenges encountered with the growing skills and labour shortages across the sector, particularly in Western Australia and Queensland," the company said.
Its resources division lifted earnings by two per cent, with project construction work being "subdued" but asset services delivering substantial growth.
Chief executive Richard Leupen said global economic uncertainty made forecasts difficult.
But, he said, UGL expected trading conditions in the 2012-13 financial year to result in similar outcomes to the 2011-12 financial year.
Within this total, UGL said its property services business would grow strongly, its operations & maintenance division would achieve modest growth, its rail business would be flat, and its resources and infrastructure business "will likely contract".
UGL cited approval delays, project cancellations, increased international competition and its balanced risk appetite as contributors to this outcome.
