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UGL maintains financial guidance

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AAP

2012-11-13

Engineering firm UGL says it still expects to post similar full-year results to the 2012, with trading conditions remaining challenging.

Chief executive Richard Leupen on Tuesday told the UGL annual general meeting there was uncertainty and limited visibility beyond the short term in the resources and infrastructure sectors.

"UGL continues to expect 2013 trading conditions overall to be volatile and challenging which we presently forecast to result in a similar trading performance to the 2012 financial year as we forecast at the full year," he told the Sydney meeting.

"We anticipate that the continuing uncertainty and projects timing will result in a more pronounced earnings skew to the second half."

UGL made a net profit of $134.3 million in the 2011/12 financial year, down 15 per cent from the previous year. In August, it forecast a similar financial result in the 2012/13 financial year.

Mr Leupen said the company had achieved some positive outcomes so far this year, winning approximately $845 million in new contracts or contract extensions.

"We see no reason for a change of direction or strategy but do see opportunities for new activities to be added to UGL, as mentioned previously," he said.

"From our existing business we expect stronger growth will return when global economic conditions stabilise and confidence returns."