The expected growth will come after Downer’s $166 million net profit for fiscal 2008, which itself was a 63% increase on fiscal 2007.
Speaking at the company’s annual general meeting in Sydney today, chairman Peter Jolie said the current challenging market conditions were being offset by the fact that Downer EDI operates in what are still attractive market segments.
“There is no doubt that the current economic environment is having an adverse impact on business globally and the roll-on effect for companies overseas and more recently in Australia has been significant,” Jolie said.
“There is little that Downer EDI can do about the share market other than continue to be informative and transparent.
“We trust that the market will soon value us accordingly.”
Downer chief executive Geoff Knox told shareholders that demand for the company’s services remained positive, and that more than 85% of its revenue had already been secured for fiscal 2009.
He said governments were continuing to stimulate infrastructure spending, further underpinning Downer’s strong, long-term order book.
Knox said the company’s major clients in the mining and metals sector were forecasting continued output and demand for its services, while clients in the oil and gas space were also maintaining demand through renewable energy projects.
Among Downer’s major clients are BHP Billiton and BMA, Rio Tinto, Queensland Rail, Exxon Mobil, Peabody, RailCorp, Xstrata, Wesfarmers and AngloGold Ashanti.