Shares in logistics and infrastructure company Qube have hit a seven month low as it warned tough trading conditions are unlikely to improve in the next 12 months.
The company handles exports and imports including iron ore and cars at several ports, and also provides road and rail transport to and from ports in all capital cities.
Qube has been impacted by troubled Pilbara miner Atlas Iron's decision to temporarily shut down production, a move that has significantly reduced the amount of iron ore it handled at Port Hedland.
Conditions for other key parts of Qube's business are also challenging, with pressure on volumes and revenue, it said.
Severe wind and rain in NSW in April also impacted Qube's rail operations.
"Looking forward, Qube does not expect trading and economic conditions to improve in financial year 2016," the company said.
Qube shares dropped 22 per cent to a low of $2.16 on Thursday, their lowest point since early December, though they later recovered to closed at $2.56, down 21 cents, or 7.6 per cent.
The company said it still expects its underlying earnings per share to rise in the current financial year.
Volumes from Atlas are not expected to return to normal until December 2015, Qube said, and earnings from its ports operations are set to be dented by the completion of several contracts.
Those ending contracts will only be partly offset by new contracts.
The company has also changed the terms of its contract with Atlas, reducing base charges and linking Qube's revenue with the iron ore price for the next two years.
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