Downer shares slump in Australia

SYDNEY - Shares in Australian engineering contractor Downer EDI dropped as much as 30 per cent in early trade today, after warning it would make a loss in the full-year ended June.

Downer shares were placed on a trading halt yesterday and an announcement was made after the close of trade.

Downer, which provides engineering and infrastructure services to the power, rail, telecommunications and mining industries, said it expected a loss of A$25 million ($30.7 million) for the year to June due to provisions for construction contracts.

Downer shares fell to the day 's low of A$5.21 -- its lowest level in more than a year, in a weaker broader market.

It also forecast a net profit of A$155 million for 2007, 11 per cent below the A$175 million average forecast from six analysts, according to Reuters Estimates.

- REUTERS