DOWNER EDI (DOW): Revenue slips on the back of subdued market conditions
DOWNER EDI (DOW): Revenue slips on the back of subdued market conditions. Divisional EBIT: Infrastructure down 16.7% to $72.8m and Mining down 29.6% to $63.4m. Rail up 279.4% to $17.5m (reflecting significantly lower restructure costs as compared to the pcp). Net operating cash flow down 8% to $257.9m on the back of lower volumes across all businesses and a higher cash inflow on the WTP RSM contract in the pcp. Outlook: Downer has reaffirmed its guidance for a full year profit of around $210 million, compared to $216 million in 2013/14. Share price reaction: Down 4.9% @ $4.27 (12.10 pm) Recommendation: Buy rating likely to be retained. See our summary report here: (VIEW LINK)
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