Australia's Leighton Holdings posts 37 percent profit increase in 9 months

Thu, May 15 10:09 AM

SYDNEY, Australia (AP) _ Australia'a largest construction company, Leighton Holdings Ltd., said Thursday its unaudited operating profit for the nine months ended March 31 rose 37 percent to 375 million Australian dollars (US$349 million; 226 million).

The Sydney-based company predicted a full-year result this fiscal year at least 30 percent better than the previous year. In the past, Leighton was focused on contract mining and infrastructure projects, but it has been expanding into residential construction and new markets to maintain earnings growth.

"We remain on track for an increase in profit for the full year of at least 30 percent on last year's A$450 million (US$419 million; 271 million), which was up 63 percent on the previous year," Chief Executive Wal King said in a statement posted on the Australian Securities Exchange. The company's outlook remains positive as it expects to capitalize on opportunities in resources, infrastructure and property in Australia and across Asia, King said.

The nine-month result was up from A$273 million (US$254 million; 164 million) for the same period a year earlier. Revenue for the three quarters was A$10 billion (US$9.3 billion; 6 billion), up 16 percent from A$8.6 billion (US$8 billion; 5.2 billion) in fiscal year 2007.

King expects Leighton's revenue growth for the next three years to be more than 10 percent a year, the statement said. This fiscal year's profit result will include a A$60 million (US$56 million; 36 million) write-down of Leighton's investment in Connector Motorways' Sydney tunnel and a A$72 million (US$67 million; 43 million) write-down of its investment in JF Infrastructure.

It will also include a net gain of A$150 million (US$140 million; 90 million) on the sale of the company's Gulf Leighton operations to its 45 percent-owned Al Habtoor Engineering unit, King said. In afternoon trade, shares in Leighton Holdings were up 6.1 percent at A$53.80.

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