The Cimic Group Ltd (ASX: CIM) share price is down a whopping 20% this afternoon after the engineering and construction services group missed analysts' forecasts for its half year profit to June 30, 2019. For the period net profit after tax came in at $367 million on revenue of $7 billion, which translates into a net profit margin of 5.3%.
Cimic will also pay a 71 cents per share interim dividend, with guidance for full year 2019 net profit to come in between a broad range of $790 million to $840 million.
Cimic Group Executive Chairman Marcelino Fernández Verdes said: "At the half way point in 2019, CIMIC Group remains in a strong financial position. Our net cash and work in hand increased consistently and we have a strong foundation for profitable growth."
According to news reports Goldman Sachs lowered its price target on Cimic shares to $45 in light of the result, with the stock changing hands for $36.60 this afternoon.
