AusRAIL, Market Sectors

Downer EDI boss quits as profit forecast is downgraded

<p>Downer EDI managing director Stephen Gillies has resigned after the company downgraded its profit expectations for the year this morning (Thursday, August 2).</p> <p>Based on current expectations and assumptions, net profit after tax for the full year will be $101.5m, significantly lower than its previous guidance of $157-$160m.</p> <p>Mr Gillies will step down from the company immediately. </p> <p>Profit outlook was affected by contract problems, including higher costs and delays.</p> <p>&#8220Importantly, there have been no new contracts identified as having significant disputes during the reporting period and cash will be received for recent contract settlements,&#8221 the company said. </p> <p>Recovery programs relating to Iluka Resources and the Coppabella coal mine project, would continue to be pursued to recover funds for shareholders, it said.</p> <br />