Calibre Group softens earnings outlook

Engineering firm Calibre Group has forecast a gloomier than expected outlook for its business due partly to depressed iron ore and coal prices.

At its annual general meeting in Perth yesterday chief executive Peter Reichler told shareholders the group was undertaking a review of its resources business and would update the market in February.

In August Calibre noted it expected tight market conditions to continue as its clients cut costs, but it was more upbeat.

At the time, when Calibre announced a net profit after tax of $24.4 million for the 2013-14 financial year, Mr Reichler said a diversification strategy away from resources and into consulting and infrastructure was paying off.

Today Mr Reichler said despite a solid first quarter in 2014-15 it had since experienced less work and some deferrals, causing it to soften its earnings outlook for the current financial year.

More details are expected to be announced in February.

Mr Reichler said he expected its consulting division to continue to grow, infrastructure to record a modest decline and its resources segment to further decline.