Transfield Services Ltd (ASX:TSE) has inked a deal to sell its North American facilities maintenance business, USM, for $US255 million and also confirmed its annual profit guidance.
USM has been sold to EMCOR and the transaction is expected to be finalised on 30 June, 2011.
Transfield expects its full year results will include a non-cash underlying net loss from the sale of discontinued operations of $16 million, in addition to currency translation losses of between $45 million to $50 million.
The company says these accounting losses will be included in its full 2011 financial year statutory profit and do not affect the underlying earnings of Transfield Services.
In the 2011 financial year, USM delivered earnings of around $24 million and the proceeds of the sale will be put towards paying debt.
Transfield has also confirmed that it expects mid-single digit percentage growth on the normalised net profit of $96 million delivered in the 2010 financial year.
In the first half of its 2011 financial year, Transfield Services generated a net profit of $14 million.
TSE Price at posting:
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