Transfield axes dividend as it posts loss Transfield Services has signalled continued difficult trading conditions, forecasting a net profit in the range of $65 million to $70 million in the year to June 2014, before impairments and amortisation. In the year to June, it posted a net profit of $65.5 million before impairments and amortisation. Including impairment charges, Transfield reported a $249.99 million net loss for the year, amid the downturn in mining sector demand and weakness in other key markets. The heavy loss compares with a net profit of $85.0 million earned a year earlier. The loss per share totalled 48.7 cents after a profit of 15.6 cents a share a year earlier. Because of the the loss and continued difficult trading conditions, the group has decided not to pay a final dividend. Transfield's forecast for the current year assumes no further deterioration in macroeconomic conditions, it said. The flat outlook is despite a further round of deep cost cutting, including axing another 180 jobs, as it responds to the continued contraction in key markets. Transfield is also continuing to pursue asset sales, such as units in the Middle East and elsewhere as it seeks to revive its fortunes. The order book totals $9.5 billion, which is down a heavy 13.6 per cent. Additionally, the pipeline of opportunities is down a heavy 17 per cent at $25.2 billion, it said. This reflects both the slowdown in activity, coupled with the group adopting a more refined approach to its end markets, he said. Despite the steep decline in the order book, Transfield said it is seeing a revival of activity in some sectors, especially outsourcing by the Federal and state governments. The macro business environment will limit the chances of a recovery, the managing director Graeme Hunt said. The group has adopted a cautious stance, given the lack of visibility given prospective contract wins and the fact that earnings are traditionally weighted to the second half, which contributes 60 per cent of earnings.