Write-downs bring Leighton profits down 41%

Leighton said its profit after tax for the period was $220 million, down from $375 million recorded for the same period last year.The company’s chief executive Wal King said the result was solid given the backdrop of the current economic environment. “Work in hand at 31 March 2009 stood at $36.5 billion, up from $28.1 billion at the same time last year while revenue for the nine months was up by 37% to $13.7 billion,” he said. King said highlights for the March quarter included a Leighton Contractors-led alliance signing an agreement with the Roads and Traffic Authority (RTA) to deliver the $225 million Tarcutta Bypass Project on the Hume Hwy in NSW. “In WA, [Leighton subsidiary] HWE Mining was awarded a five-year contract extension worth approximately $400 million at the Orebody 23/25 mine in the Pilbara region,” he said. “For the 2008/2009 financial year, the group expects to report full year revenue approaching $19 billion and net profit after tax reduced to approximately $430 million, which includes the write down of investment values already recognised, however the group is continuing to face pressure on its operating performance for the remainder of the financial year,” King said.

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