Transfield Services $247m Loss 1H2013

Construction and maintenance company, Transfield (ASX:TSE) have announced its half year financial results for 2013 to its shareholders and investors on the Australian stockmarket.

• Transfield Services posted a $247 million Loss for the 6 months.
• Transfield chief executive Graeme Hunt said, " We are cutting parts that are not aligned with strategy or do not meet our margin, capital or growth criteria."
• The disappointing result includes asset writedowns at $284.3 million. $169.2 million was from its Easternwell minerals exploration division. The Easternwell minerals business was down due to the decrease of exploration by mining companies and the use of its exploration rigs are at all time lows.
• Transfield full year net profit guidance down to $85 to $90 million from $125 to $135 million.
• Excluding impairments and amortisation, TSE's after-tax profit was $26.9 million, down 38 percent on the previous corresponding period.
• After a four month review of Transfield's portfolio, workforce, strategy and capital management the company will sell assets including Easternwell's minerals exploration and marine geotechnical arms, activities in the Middle East and Asia and its stake in Ratch-Australia Corporation.
• Transfield has declared an interim dividend of 3 cents per share unfranked.