Australian Investment Blog

CIMIC tumbles after a soft first half

Stock Cimic Group (CIM) $37.71 as at 18/07/2019 Event Cimic shares have tumbled to 2 year lows today following on from a soft first half result which the company presented after market yesterday. The profit line was marginally better than 1^st half 2018 at $367m with the company needing a large second half skew to meet the reiterated guidance of $790m-$840m. The miss was driven by the construction business which accounts for nearly half of Cimic’s earnings. Much of the 15% decline here was felt in its Asian market where the company is facing backlash for alleged defects in construction works in Hong Kong. The tumble was offset by a surge in the mining division which saw profits rise more than 25%. Cimic is used to seeing a marginal skew of around 45/55 to the second half earnings which would be enough to meet the lower end of guidance at the full year result. There is also a clear path to achieving this as total work in hand rose 6% in the half. Cimic (CIM) Chart Market Matters Take/Outlook