Transpacific predicts 1H earnings drop
Transpacific Industries Group Limited (TPI) forecast first half FY10 operating EBITDA result between $197 million and $200 million and operating EBIT between $115 million and $118 million. The provider of integrated total waste management solutions said this result is above the 2H FY09 operating EBITDA of $191.9 million, but below the 1H FY09 operating EBITDA of $255.7 million.
The company said, as had been indicated in November 2009, operating conditions for the six months ended 31 December 2009 were mixed.
“While the company’s municipal business has performed well, and commodity prices have improved from lows in FY09, market conditions were subdued in some areas, particularly those relating to commercial vehicles, manufacturing, construction and demolition and liquid waste,” Transpacific Industries said.
The company said interest expense is expected to be $86 million, consistent with the FY09 pro forma interest expense provided in Transpacific’s entitlement offer prospectus.
”Although the improvement in trading performance during first half FY2010 has been modest, the Company is seeing signs of stabilisation in the operating environment,” Transpacific Industries said.
As previously indicated, the company expects 1H FY10 NPAT to be impacted by a one-off, non-cash mark to market expense of approximately $10 million on the Warrants issued to Warburg Pincus as part of the recapitalisation process.
Transpacific Industries also expects a positive impact to NPAT of approximately $15 million from the mark to market of interest rate hedges.
The company said its audited results for the first half would be released on 24 February 2010.
As at 1033 AEDT, Transpacific Industries shares were down 2.5c to $1.36.
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