SYDNEY Jan 29 Australian engineering firm Forge
Group Ltd said it has received third-party approaches
and has named an adviser to manage the approaches.
Forge also said it expected a 2014 full-year loss due to
cost pressures and challenging domestic market conditions.
Forge Group, which mainly works for the resource sector,
said it expects a pro-forma full-year loss of A$20 million to
A$25 million ($17.55 million to $21.93 million), a sharp
decrease from its previous guidance of earnings in the range of
A$45 million to A$50 million.
The company said it cut the guidance due to impacted profit
margins on some contracts and increasing cost pressures, as well
as challenging domestic market conditions.
Forge said it had been approached by "various third parties"
despite recent challenges and said it has appointed Euroz
Securities as corporate adviser to manage these approaches.
Shares in Forge Group closed at A$0.90 last Thursday, and
trading has been halted since then. The shares have lost nearly
50 percent in January.
($1 = 1.1399 Australian dollars)
(Reporting by Maggie Lu Yueyang; Editing by Leslie Adler)