Fleetwood (ASX:FWD) is facing project delays after being hit with poor weather on the east coast as well as labour and material shortages, which has resulted in lower than expected progress across projects in NSW, Victoria, and Western Australia during the second half of FY22.
The construction company said that it has also experienced further delays and cost escalation on the Ti Tree Camp Upgrade mining project in Western Australia. Site works on this project are expected to be substantially complete by the end of the first quarter of FY23.
Based on these factors, the company expects to deliver a similar second half earnings before interest, tax and amortisation result to the first half of FY22.
Personnel changes, cost control and governance measures within the Building Solutions business have been implemented, and the company has retained robust cash on hand to cover upcoming working capital and capital expenditure requirements across the business, according to Fleetwood.
Based on the order book and outlook across the operating businesses, Fleetwood anticipates a return to profitability in FY23.
Shares traded at $1.72 on Friday.