Construction giant Leighton boosted its profit in the first half of 2013, but investors remain concerned about the impact of the mining downturn on the company.
Leighton made a net profit of $366.2 million in the six months to June 30, up from $114.6 million in the same period in 2012.
But its shares dropped by six per cent on Wednesday, losing $1.03 to $16.24.
Morningstar analyst Ross MacMillan said investors were anxious about a downturn in spending on mining projects, with mining services representing 37 per cent of Leighton’s $40 billion worth of work in hand.
“We’ve still got a lot of turmoil occurring in the mining sector – that’s having an impact on contractors like Leighton,” Mr MacMillan said.
Leighton chief executive Hamish Tyrwhitt said the company was diversifying its operations across different industries and countries.
“Through the economic cycle some sectors will grow and some will contract,” he said.
“This is where our diversity comes in.
“During the period, we saw a different mix within the portfolio as we won work in Australian LNG construction and in Asia Pacific social and economic infrastructure.”
Leighton’s revenue rose by six per cent in the six months to June to $10.5 billion.
The company is working on a significant changes in its business after posting losses in 2011.
“The higher revenue, margin and net profit achieved during the first half shows the clear turnaround of our business,” Mr Tyrwhitt said.
Leighton maintained its forecast of an underlying full year underlying profit of between $520 million and $600 million.
Its underlying profit for the first half of the year more than doubled to $255 million.