UPDATE 1-Aveng sees FY headline EPS 20-25 pct lower
* Lays off 450 people
* Two year order book up 9.6 pct
* Says earnings hit by special dividend, share buy-back
(Adds details, shares)
JOHANNESBURG, June 30 (Reuters) - South African construction group Aveng (AEGJ.J) expects to report 20-25 percent decline in full year headline earnings per share and said it has axed 450 jobs as project cancellations and tough economic climate bite.
Aveng, South Africa's second biggest construction company, said headline EPS were hit by last year's special dividend and a 4.6 billion rand ($598.4 million) share buy-back programme.
Shares in Aveng fell 1.43 percent to to 34.40 rand by 1414 GMT, lagging a slightly firm JSE Mid Cap index .JMIDC.
The company, which said in March it lost 4.2 billion rand worth of contracts in project cancellations, said it's clients have not cancelled any more projects since February this year.
"The group's strong balance sheet and conservative approach to conducting business ensures that it is well positioned to weather current adverse market conditions," the company said in a statement.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off, financial and non-trading items.
(Reporting by Tiisetso Motsoeneng)
