WOR - up 8% and over 52 week high, page-34

WOR holders could do worse than read today's fy16 result from MND. Earnings down 37% and outlook 'challenging' i.e. difficult. Notes that' customers continue to focus on productivity improvements' i.e. do more for less. MND strategy remains to a) focus on staying competitive, b) do more maintenance wk, c) do more civil/infrastructure work eg water supply, wind farms etc. WOR's main source of income is consulting engineering in construction. Its main sector is oil and gas along with resources.

MND's presentation illustrates how in the Aussie mkt the total spend for FY17 in these 2 sectors is set to fall by 28% from 58B to 42B with more falls in fy 18 and fy19. Only sector showing a significant increase is infrastructure eg rail, roads etc... much of it from state and fed govts. WOR does little work in these fields.

But over half of WOR's revenue is from overseas projects which are likely to show (imo) even bigger drops in the oil&gas and resources sectors.... at least in fy17.

dyor.