Write-downs hit Leighton profits

Leighton has announced its results for the current financial year will be reduced because of write-downs on several investments. These include Australia's EastLink, Rivercity and Brisconnections road projects, which it is involved in as a partner in the concession companies, as well as Australian house builder Devine and contractor Macmahon.

According to Leighton, the value of these assets to Leighton fell AU$ 200 million (US$ 142 million) between 30 September and 31 December last year. It says this will reduce post-tax profits for the first six months of its current accounting year, which began on 1 July, by AU$ 170 million (US$ 121 million)

Without these write-downs, Leighton says its operating profit for the six months to 31 December, would have been up +8% to AU$ 270 million (US$ 191 million). Similarly, before the impact of these write-downs, it expects its post-tax operating profit for the full year to June 30 to be up +8% to AU$ 650 million (US$ 461 million), compared to AU$ 608 million (US$ 431 million) last year.

Leighton says it expects to keep both its interim and full-year dividend at the same level as last year. It will publish results for the first half of the current accounting year on February 12.