downgrade

Shares in Newcrest Mining (NCM) have declined by 99 per cent at $30.08 yesterday after the market reacted to the downgrade in the company's gold production in Monday. The share prices were shortly below $30 before the day ended to its closing price, which is currently the lowest the company has plumbed in more than 27 months.

APN News & Media (APN) expects its net profit this year to downgrade to between $75 million and $77 million, which is slightly below market consensus, despite having a better second half. The decline is caused by weakness in advertising markets, natural disasters in Queensland and New Zealand, and the 5% depreciation of the New Zealand dollar.

After OneSteel Limited (ASX:OST) slashed second-half profit guidance by a quarter because of bad weather and the rise in the dollar, BlueScope Steel (BSL) could follow the downgrade as its shares fell to a record low yesterday.

Construction company, Leighton Holdings (ASX:LEI) have revealed a downgrade in net profit of 23 percent. The company has been unexpected writedown of $85 million from delays and cost overruns for the Brisbane Airport Link project and a reduction of profits from its Macmahon investment. Leighton told analysts yesterday that the $85 million writedown on the Airport Link project would reach $120 million in the 2011 financial year.

Northern territory based uranium producer, Energy Resources of Australia (ASX:ERA) has released a warning that its annual profit will be affected as if lowers output guidance for 2010 on poor grades from its Ranger Mine.

Australian insurance company, QBE Insurance (ASX:QBE) has issued a warning to the share market that its profit forecast is 40 percent lower than last year. As a consequence, company shares have fallen.

Profit Forecast Hit by Investment Losses

QBE Insurance has informed the market that heavy investment losses offset the 20 percent growth in insurance premiums and a 7 percent increase of insurance profit to US$820 million.

The striking crane drivers, who are working at the $13 billion worth of Pluto gas plant of Woodside Petroleum (WPL) were ordered to return to work. Brendan McCarthy, the deputy president of Fair Work Australia issued an order last night suspending a three-month long industrial action which according to Woodside was causing major problems to the economy. The industrial action begun on 28th of April over the demand of an increase of payments.