Why NRW Holdings shares are freefalling today

NRW Holdings (ASX: NWH) shares have slumped 5% this morning after reporting a fatal accident involving one of its employees.

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NRW Holdings Limited (ASX: NWH) shares are down more than 6% this morning after a "serious accident" at a mining site.

Why are NRW Holdings shares down today?

The S&P/ASX 200 (INDEXASX: XJO) group reported an accident early on Monday morning that has resulted in an employee's death. The group's shares have plummeted in early trade after the tragic incident news.

The man was an employee of NRW's wholly-owned subsidiary DIAB Engineering Pty Ltd (DIAB).

According to this morning's release, the man sustained serious injuries following an accident at the Roy Hill Iron Ore Mine in Western Australia. He was flown by the Royal Flying Doctor Service to Perth for hospital treatment but died of his injuries last night.

NRW Holdings shares have slumped lower following the tragic news this morning. NRW and DIAB are assisting Roy Hill and relevant authorities with the investigation into the incident.

DIAB was acquired as part of NRW's $116.4 million buyout of BGC Contracting in December 2019.

What has been happening to the group's share price recently?

The December 2019 transaction sent NRW Holdings shares surging higher just before Christmas.

The Aussie construction and engineering company finished the last calendar year as one of the top performing ASX 200 shares.

NRW Holdings shares rocketed 201.88% higher throughout 2019 on the back of strong earnings and continued expansion.

It's been a particularly strong run for the Aussie engineering and construction group given the struggles of its rivals.

Both the Cimic Group Ltd (ASX: CIM) and Downer EDI Limited (ASX: DOW) share prices have been hammered in early 2020.

The Cimic share price is down 13.04% in January after being slammed nearly 20% lower in one day last week. On the same day, Downer shares plummeted after an FY20 profit downgrade from the group.

Foolish takeaway

The devastating news this morning has hit NRW Holdings shares hard this morning as investors process the likely financial impact of the news.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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