Keller tumbles on profits warning

12th May 2011 07:22

Ground engineering specialist Keller said total revenue in the first four months of the year was ahead of the same period last year and it expects to report solid revenue growth for the full year. Keller said its order intake remains robust and the order book at the end of April was 9% ahead of 2010. However, the group warned that the impact of lower margins in the US, combined with the Australian floods and geopolitical issues in the Middle East and North Africa, mean it now expects group's EBIT for the year to be around 10% below that in 2010, with the second half being broadly in line with last year. "As expected, we have seen no easing of the challenges facing our industry in the first few months of this year. There has not been any meaningful recovery in our construction markets in the US and Western Europe, which were most severely impacted by the global recession," Keller said in a company statement. It added that over capacity remains a significant issue, particularly in the US, putting continued pressure on margins. Despite this, Keller said it remains convinced that the outlook for global construction remains positive and that Keller is well placed to take full advantage of opportunities both in its developing markets and in its mature markets as these recover.