(Reuters) - Australia's Downer EDI Ltd <DOW.AX> said on Monday it would book a goodwill impairment charge of A$77 million ($61 million) for its mining business in the half year to Dec. 31 2017.
The mining contractor said the impairment of goodwill was due to non-renewal of two material contracts and delays in securing alternative contracts.
However, Downer said the non-cash charge will not have any impact on existing operations or guidance for fiscal 2018.
The company said it expects 2017/18 underlying net profit after tax and before amortisation of acquired intangible assets of A$295 million before minority interests.
Downer has been diversifying away from mining services to reduce its reliance on the sector, buying companies in parallel industries.
It bid A$1.27 billion for cleaner-caterer Spotless Group Holdings <SPO.AX> last March, eventually winning over 85 percent of Spotless shares.
Downer shares were trading 2.4 percent lower at 2313 GMT, while the benchmark index <.AXJO> was 1.5 percent lower.
(Reporting by Sandhya Sampath in Bengaluru; editing by Richard Pullin)
