By Robb M. Stewart 
 

MELBOURNE--Australian construction and contract mining company Macmahon Holdings Ltd. (MAH.AU) said Wednesday its earnings may fall by as much as 64% this financial year as it faces additional costs to keep a rail-work contract for Rio Tinto PLC (RIO) on schedule and increasing uncertainty over new construction work.

In a separate statement, the company said its chief executive Nick Bowen had resigned, effective immediately. He will be replaced by the firm's chief operating officer for mining, Ross Carroll. No reason for Mr. Bowen's departure was given.

Macmahon now expects to report an after-tax profit for the full year of between A$20 million and A$40 million. The mining company recorded an after-tax profit of A$56.1 million in the year ended June 30.

Write to Robb M. Stewart at robb.stewart@wsj.com

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