SYDNEY Nov 12 Australia's Seven Group Holdings
said it was cutting an additional 630 jobs in its
WesTrac heavy machinery unit, adding that the tough conditions
in mining and construction markets meant earnings would be at
the lower end of guidance.
WesTrac and global peers including Caterpillar Inc
and Cummins Inc have been hit by a slowdown in capital
spending by resource companies as a boom in commodity prices
Seven Group, the owner of the Seven TV network as well as
Caterpillar dealer WesTrac, said the difficult market conditions
meant it expected full-year underlying earnings before interest
and tax to be at the lower end of its August guidance of 30-40
percent below last year's figure.
"WesTrac has implemented a series of efficiency and
productivity initiatives over the past twelve months in an
effort to streamline its cost base, but these measures alone
have not been sufficient in view of continuing challenging
market conditions," Seven said in a statement.
The company had previously announced plans to cut 375 jobs.
WesTrac will have around 3,350 staff after the latest cuts.
Shares in Seven, controlled by billionaire Kerry Stokes,
were up 0.5 percent at A$7.75, down from a year high of A$11.69
(Reporting by Lincoln Feast; Editing by Edwina Gibbs)