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K&S to take hefty hit on first-half profits

Stevenson points to positives as WA trading conditions ease

K&S Corporation is looking to improved conditions this calendar year to take some of the sting out of a sharp drop in expected first-half profits for the financial year.

Bullish Western Australian activity, which had supported east coast operations doing it tough over the past few years, has softened.

K&S expects to see its net profit after tax for the first half of the financial year to fall 55 percent of what it was at the same time last year.

Based on unaudited management accounts, the company foresees this year’s first half profit coming in at $5.6 million.

K&S also points out in a trading update that the fall comes off a record previous first half and includes $970,000 in one-off reorganisation costs and transaction costs associated with the current merger with Scott Corporation.

“After a disappointing first quarter to financial year 2014, we have seen some modest improvement in underlying trading conditions in the second quarter,” K&S Managing Director Greg Stevenson says.

“We are also seeing some benefit from steps taken to reduce costs better to align the company’s cost base with current volumes.”

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