Construction group Murray & Roberts Holdings said on Wednesday in a trading statement that it expects diluted headline earnings per share and diluted earnings per share for the year ending June 30, 2010 to be 50% to 55% lower than the previous comparable period.

In 2009, the group reported diluted headline earnings of 675 cents per share, up 23% on the previous year.

It noted that the most recent available information on the estimated cost to completion of the Gautrain Project infrastructure works indicated an increase of about R390 million over the position on which the group half year accounts to December 31, 2009 were prepared.

"This includes an estimate of additional delay mitigation and the remaining costs required to deliver significant completion of the system on schedule and the full system shortly thereafter," it said.

Murray & Roberts said that previous claims by its board relative to the scope of the Gautrain Project, was prudent.

The construction group said that its operating margin would remain within the group's strategic range of 5,0% to 7,5%.

Bombela Civils Joint Venture, in which Murray & Roberts has a 45% share, has invested significant working capital to mitigate the impact of delayed land handover, higher than anticipated input cost inflation and adverse geological conditions," it said.

"The mitigation measures taken by Bombela to date and a Herculean coordinated effort by all parties and people involved in the Project over the past few months, allowed Bombela Concession Company ("BCC"), to successfully commission Gautrain operations on 8 June 2010, 19 days ahead of schedule in time for the 2010 FIFA World Cup South Africa TM.

BCC is 66% South African owned by Murray & Roberts, empowerment partner SPG and local investors.

The group said its Order Book remains stable at about R40 billion with a solid long-term component in Southern Africa.

"The Group's international markets continue to offer increased levels of opportunity while there is a shortage of new workflow into the Group's South African markets," it said.

Murray & Roberts will publish its results on about August 25, 2010.

At 15.30 shares in the group traded 1.66 cents or 3.99% down at 39.75 on the JSE.