The company today reported profits after tax and minorities of $17.2 million, in line with its guidance of $15-20 million.

Macmahon blamed the profit fall on the slowdown in the mining industry.

The company also suffered one-off operating losses and demobilisation costs from two BHP Billiton Mitsubishi Alliance mines in Queensland.

Also impacting on profits were redundancy costs from the past six months.

Despite the slowdown, Macmahon’s revenues actually increased to $1.48 billion, up 19% compared to last year.

Mining earned $644.9 million in revenue for the company while construction earned $840 million – 34% more than last year.

Chief executive Nick Bowen said the company had responded quickly to the changing economic conditions over the past year by turning to construction and infrastructure work while “consolidating” the mining business.

Key construction contracts for the company include the Jilalan rail project in Queensland and BHP Billiton’s iron ore railway duplication project in the Pilbara.

The company’s order book has fallen from $2.1 billion at this time last year to $1.4 billion this year, which Bowen said came mainly from the mining slowdown.

The company today said it had lost around $348 million from its order book from contract cancellations and deferrals.

However, Bowen said signs of a turnaround were already emerging.

“The outlook for the construction market remains buoyant, with government spending underpinning growth in this sector.

“We are also seeing the mining sector begin to rebound with a recent increase in tendering enquiries,” he said.

Bowen also forecast the company’s revenue in 2010 would be at least $1.3 billion.

The company won’t be paying a dividend this year but hopes to restart payment in 2010.

Shares in Macmahon, which had $109 million cash at the end of the year, were last traded at 60c, up 3c this morning.