Reuters SYDNEY, May 16 (Reuters) - Australia's Transfield...

Reuters

SYDNEY, May 16 (Reuters) - Australia's Transfield Services Ltd (TSE.AX: Quote, Profile, Research) warned on Friday its 2008 net profit would miss market forecasts because of rising costs, a strong currency and clients deferring projects, triggering a near 14 percent slide in its shares.

Transfield, which provides services for mining, transport and utility projects in Australia and overseas, said it expects year net profit in a range of A$105 million to A$110 million ($99-104 million), below market consensus which it said was A$115-120 million. Transfield also said it saw growth in earnings before interest, tax and amortisation of at least 30 percent in 2008, while the outlook for fiscal 2009 was still positive.

It said it traditionally has a strong final quarter.

"However, the business is being impacted by a strong Australian dollar, rising input costs, a targeted investment in growth, and clients deferring work until the next financial year," the company said in a statement.

It added it has secured a one-year extension from its banks of debt that was maturing in July, without giving an amount.

Transfield shares fell as much as 13.8 percent to a low of A$11.41. It traded down 12.5 percent to A$11.59 at 0025 GMT, while the broader market was up 0.9 percent. ($1=A$1.06) (Reporting by Victoria Thieberger; Editing by James Thornhill)