Weaker US market, European project delays dent Keller's financials

Engineering company Keller Group said a slow construction market in the US, intense competition in the Middle East and project delays have hurt profits and revenues during the last quarter.

In the four months to April, Keller saw a decline in revenues and profits when compared with same time last year, mostly due to a slowdown in Australia.

The group noted the quarter was the quietest period of the year.

In Europe, the company is facing project delays in the Caspian region. Its performance in Australia is "well behind" last year due to the completion of the $230m Wheatstone project.

Heavy snowfall in the US in February and March also had an impact in the group's results.

On the bright side, Keller said that its full-year expectations remain unchanged thanks to a stronger order book versus last year.

Chief executive Justin Atkinson, who announced he would be stepping down after the annual general meeting to be held on Thursday, said: "Although we have seen a slow start to 2015, the order book is strong and we anticipate a good second half of the year, underpinned by our US business.

"Accordingly, we believe that the group's results for the full year will be in line with current market expectations, albeit more second half weighted than normal."

Shares in Keller fell 3.49% to 993.14p on Thursday at 08:45.