Leighton looks to the future

MAJOR contract miner Leighton Holdings has reaffirmed its previously announced profit guidance for the 2012 financial year despite incurring an additional $192 million charge for the Victorian desalination project.
Leighton looks to the future Leighton looks to the future Leighton looks to the future Leighton looks to the future Leighton looks to the future

Leighton works at the Duralie mine.

Staff Reporter

The group, which has recently completed a detailed forecasting review across all of its operations, hopes to report an after tax profit of $A600-650 million for the 2012 financial year.

During the half year period to December 31, Leighton expects to lodge a profit after tax of around $250 million, excluding the capital gain from the $705 million sale of its HWE Pilbara iron ore business to BHP Billiton.

Leighton chief executive officer Hamish Tyrwhitt said that while the review identified further deterioration in the forecast financial position of the Victorian desalination project it also identified gains elsewhere in the business including contract mining.

“Looking forward we remain in a solid position with work in hand of around $44 billion as at September 30 and our core markets continuing to provide substantial opportunities,” he said.

“The engineering and construction markets are expected to grow strongly over the next few years in Australia, underpinned by significant investment in mining and a strong pipeline of heavy industrial projects such as LNG and coal seam methane.

“Other infrastructure projects, including roads and railways, will provide a good level of opportunities which suits the group’s core competencies.”

He said contract mining in Australia and overseas would continue to be in high demand as

Asian economies keep urbanising and industrialising.

“As the world’s largest contract miner, the Leighton Group is well placed to pursue more resources related work in Australia, Indonesia, Mongolia, the Philippines, India and Southern Africa,” said Tyrwhitt.

The company will report its quarterly results at its annual general meeting on November 11.

The news comes after Leighton earlier this month announced a $US600 million ($A588 million) lease facility to support its growth plans in Indonesia.

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