Construction and maintenance group Transfield Services remains confident of hitting its profit target as it continues to cut costs and reduce debt.

Transfield’s earnings in the first quarter of the 2013/14 financial year were as expected, and full year profit should be between $65 million and $70 million, it said on Friday.

The forecast boosted Transfield’s share price, which gained 4.5 cents, or 3.1 per cent, to $1.515.

The company made a $250 million loss in the 2012/13 financial year, due to a slowdown in the mining and process industries.

Chief executive Graeme Hunt said restructuring costs of $6.3 million were included in the company’s 2013/14 guidance, which also assumes no further deterioration or significant improvement in the economic environment.

“As further cost and operational improvements are implemented, and the business environment improves, the group expects further earnings growth in fiscal 2015,” Mr Hunt told the company’s annual general meeting in Sydney.

Transfield cut 359 jobs in the 2012/13 financial year, and has previously said it plans to let another 180 staff go before the end of 2013 as it continues with a restructure.

“We will quit areas with no or limited growth or potential future value and concentrate our resources on those sectors with the greatest potential,” Outgoing chairman Tony Shepherd said.

A freeze on dividends and executive salaries remains, he said.

“Markets are still volatile and we must lift our capacity to withstand whatever shocks come our way,” Mr Shepherd said.