Australia's Downer EDI Lowers Annual Profit Outlook by 18% as Costs Surge

Australia’s Downer EDI cut its annual profit forecast on Thursday amid a surge in costs at its loss-making construction contracts, sending the company’s shares sharply lower to mark their worst session in nearly a decade, Reuters reported. The revised outlook comes amid weak global business investment and as Australia’s economy stutters along with sluggish wage growth and high consumer debt. The New South Wales-based company slashed its previous estimate of net profit after tax and amortisation by nearly 18% to A$300 million ($205.17 million), and said it will shift focus towards long-term contracts. After significant cost overruns in December and January, the engineering contractor said a further A$43 million will be needed in order to complete its loss-making projects. Read more