Engineering firm Bradken has flagged more job losses as part of a new round of cost cutting to deal with a slowing mining sector.

The company has already cut 575 positions since January, and says it will further reduce costs and spending following a steep fall in profit in the 2012/13 financial year.

The cuts come as fellow mining services companies suffer under the weight of a sector-wide slowdown, due to project delays and deferrals.

Bradken said it expects difficult market conditions to continue in the 2013/14 financial year, particularly in the first six months.

“The main business strategy in these conditions is to reduce both operating and overhead costs in line with the reduced activity levels, and to reduce working capital and capital expenditure to maximise cash flow,” the company said.

In the year to June Bradken cut its workforce from 6,500 to the current level of 5,425, with job losses coming from its operations in both Australia and the United States.

Investors welcomed the cost cutting plans, which were announced as Bradken posted a 33 per cent fall in full year profit and a 10 per cent reduction in sales.

Bradken made a net profit of $66.9 million in the year to June 30, down from $100.5 million in the previous year.

The result included a one-off before tax charge of $30.4 million related to federal court proceedings stemming from its acquisition of Canadian company Norcast.

Managing director Brian Hodges predicted little earnings improvement in the current financial year.

“The first half of fiscal 2014 will be challenging, but overall we expect the year to be broadly comparable with fiscal 2013,” Mr Hodges said.

But he expects mine production to steadily increase over the year.

Options Xpress analyst Ben Le Brun said the company’s profit was reasonable given it had already downgraded its earnings guidance.

“I still have grave concerns about what we’re going to see in 2014,” Mr Le Brun said.

Bradken shares were up 50.5 cents, or 9.6 per cent, at $5.745 at 1441 AEST.