Diversified engineering services outfit Downer EDI said it expects profitability in the current year to improve by at least 12% over 2003/04, despite a shortage of skilled engineering workers hurting its ability to meet booming demand for services. Downer EDI, which operates across the areas of rail and road infrastructure, telecommunications, mining and power generation, has lifted its revenue forecasts for 2005, built on an increase in secured sales and above-budget first quarter trading.

However the company's managing director, Stephen Gillies, warned

that a shrinking pool of skilled engineering workers was already

constraining the ability of engineering-oriented companies to meet

the increase in demand, particularly in the mining industry. Mr Gillies told shareholders at the annual general meeting that

the company had lifted its revenue forecast above the previously

predicted 10 per cent growth on 2003/04's revenue of $3.2 billion

and that profitability in the current year would improve over 2004

by "at least 12 per cent".

The Age