Keller Share News (KLR)

(ShareCast News) - Keller shares tanked on Thursday after the FTSE 250 ground engineering company cautioned that its full-year 2016 underlying results will be around 15% below current market expectations, mainly due to underperformance in the Asia Pacific division.In a trading update for the third quarter, the company said the APAC division incurred further operating losses due to ongoing difficult market conditions."We continue to experience some contract softness and the pricing environment remains challenging. The recovery in this division is likely to be more gradual and protracted than previously thought. The division is therefore now expected to record a loss for the second half, albeit with an improving trend in its performance."In addition, Keller said the second half results will include an exceptional restructuring charge of around £10m in connection with further downsizing action.The group's two largest divisions - North America and EMEA - delivered "steady" results. Trading in the US and Europe, which between them account for around 70% of group revenue, remained strong with expectations for the full year unchanged from the half-year results back in August.Elsewhere in these divisions, quarterly results were "somewhat disappointing", particularly in the Canada and sub-Saharan Africa, where market conditions remain depressed and the group has undertaken further restructuring.On a brighter note, Keller said the third quarter has seen good order intake. As a result, the like-for-like order book for work to be undertaken over the next 12 months, including the recently announced £60m contract in Egypt, is at an all-time high and 15% higher than last year."Looking further ahead, the strength of the order book and steadily growing construction markets in the US and Europe, together with the management actions we have taken, means that the group continues to be well placed for 2017."Numis cut its 2016 pre-tax profit forecast by 15% to £85 on the back of the warning and its earnings per share estimate by 15% to 76.3p. For 2017, it cut the pre-tax profit estimate by 10% to £97m and the EPS forecast by 10% to 87.2p."Whilst management have made some positive noises in regards to outlook, this is the second profit warning in three months and therefore investors may be sceptical of management guidance," the brokerage said.At 0915 BST, Keller shares were down 24% to 674.50p.