Leighton back in profit

Leighton Holdings made a new profit of AU$ 115 million (US$ 121 million) in the first half of the year, compared to a loss of AU$ 626 million (US$ 663 million) for the same period last year. The positive result for the first half of the year also came despite the company making a loss in the first quarter due to problems on two major projects.

The company's revenues were up +14% to AU$ 11.1 billion (US$ 11.7 billion) in the first half. A high volume of contract wins in the period - AU$ 13.7 billion (US$ 14.5 billion) - took the company's total backlog to a record of AU$ 47.3 billion (US$ 50.1 billion), some +2.3% higher than a year ago.

Leighton CEO Hamish Tyrwhitt said, "This is a solid operating result during a period when we have made substantial progress on resolving legacy issues and delivered a record level of work in hand. Importantly, we are repositioning the group and building the platform that will drive sustainable growth."

Commenting on the projects in Australia that have impacted on its profits in the last few quarters, Leighton said that the Brisbane Airport Link project was completed on 23 July and opened to traffic the following day - some 3 ½ weeks after the contractual completion date. The Victoria Desalination Plant meanwhile is aid to remain on target for completion by the end of the year.

"While the Airport Link and Victoria Desalination projects have had a considerable financial impact on the group, they are among the most complex engineering projects ever undertaken in this country. Completion of such iconic projects reinforces our reputation for delivery of major projects," said Mr Tyrwhitt.