Heavy equipment specialist Emeco Holdings Ltd said on Tuesday that the company's annual net profit should reach the lower rung of earnings guidance previously announced, effectively matching its targeted range of $40 million to $41 million and only $3 million shy from the maximum $44 million earlier set.

Company chief executive Keith Gordon explained that the current full year has been a tough year for most companies, specifically for the mining services firms working with the resource industry.

However, with the financial crunch almost behind Australia and coupled with an encouraging operating result firmly in line with earnings guidance, Mr Gordon said that Emeco is being given a "solid foundation to move forward into FY11 and beyond," adding that the company is well-placed to publish its full year results by August 25.

Following close evaluation of the company, Emeco revealed that it would swing its concentration on servicing resource companies and eventually exit from the civil infrastructure markets.

Emeco said that first on its priority list is the spin off of its Victorian civil equipment rental business then the downsizing and restructuring of the company's Australian sales and parts business, which should enable Emeco to focus on mining services.

Mr Gordon reasoned that the new strategy were spurred by deep concerns of soft market fundamentals and changing market structures which delivered unacceptable returns for some of Emeco's operations.

Either way, the company should see an estimated $60 million fluid capital being released by the planned changes in the 2011 financial year, according to Mr Gordon, and in the short term "the divestiture and restructure will incur goodwill impairments of approximately $37 million and restructure charges of $6 million pre-tax."

Mr Gordon said that the planned US and European shutdowns and restructures announced earlier this year would bring about charges of up to $30 million but still in line with Emeco's expectations.

As an alternative, Mr Gordon said that the company would be focusing on core mining markets and clients in Australia, Indonesia and Canada, all locations with promises of a much encouraging outlook for volume commodities, gold and oil sands.