Transfield drops profit guidance by 23%

Transfield Services (ASX: TSE) has dropped down its full-year profit guidance by 23% after beginning a trading halt yesterday.

The company now expects 2012 financial year net profit after tax, and before amortisation, to be $105 million – down from the $130-135 million predicted in February.

Shares in Transfield plunged after the announcement and were trading down 12.65% to $2.175 at 11.40am.

The new profit guidance allows for $9 million of extreme weather impact and a $16 million legacy construction contract provision.

The company says it will also restart its share buyback.

Transfield expects to grow its order book, now standing at $11 billion, with about $650 million in new contracts expected in the coming weeks.

Transfield provides operations, maintenance and construction services in 12 countries, employing more than 27,000 people.

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