NRW Holdings reduces revenue estimates due to Fortescue’s cost cutting

Australia-based mining services company NRW Holdings has announced a revision in its estimated revenue for the financial year 2012-13, following Australian miner Fortescue Metals' decision to cut costs at its Solomon and Christmas Creek mines.
 
Accordingly, NRW Holdings has decreased its revenue estimate for FY 2012-13 to $1.2 billion from the previous estimate of $1.3 billion, in line with Fortescue's announcement that it will defer $1.6 billion of capital expenditure. The company now expects a revenue growth of approximately 15 percent compared to the previously announced 20 percent, adding that the change in contract status from Fortescue has no impact on secured revenue for the financial year 2013-14 and beyond.
 
Earlier this week, Fortescue announced that it would cut its capital expenditures to secure the profitability and liquidity of the company in response to volatile market conditions and uncertainty over future iron ore prices.