Leighton profit down $170M in first half

The $170 million reduction means the company will record a profit of approximately $100 million for the first half of fiscal 2009, which compares to a net profit of $250 million for the same period in fiscal 2008. The company said the value of these investments had fallen by $200 million between September 30 and December 31, 2008.But Leighton chief executive Wal King remained upbeat, saying that the performance of the group’s operating companies continued to be strong, with the exception of Leighton Properties. He said work in hand had increased to approximately $37 billion at the end of December compared to $35.3 billion at September 30, 2008. The operating result for the six months to December 31, prior to the impact of investment values, was expected to be approximately $270 million, an increase of 8% on the previous year. For the full year, the company expects to report an operating result after tax of approximately $650 million, up 8% compared to last year’s operating result of $608 million. The group reported profit would be affected by the write-down of investment values. The company will release its results for the half year on Thursday, February 12, 2009.Leighton shares were down 11% to $25.20 in early afternoon trade today.

Send this to a friend