Leighton Holdings has posted a net profit of $317 million for the nine months ended 30 September and has reconfirmed its underlying net profit guidance for its full calendar year.
The result compares with a $325 million loss after tax for the same period a year ago.
Chief executive Hamish Tyrwhitt said the construction and contract mining group was continuing to deliver solid operating results, making progress on “legacy issues”, and was advancing its strategy to stabilise, re-base and grow the business.
“While our addressable market continues to provide us with opportunities in Australia and overseas, we are experiencing some minor slowdown in activity in the mining sector, albeit this has not impacted on our FY (full year) 2012 forecast,” Mr Tyrwhitt said in a statement issued after the close of stock exchange trading on Tuesday.
“Our underlying NPAT3 guidance for the year to 31 December 2012 is reconfirmed for $400-$450 million.
“Importantly, our strategy of stabilise, rebase and grow is aimed at net margin expansion rather than top-line growth including cost and overhead reductions across the group.”
Leighton said that in three months to September 2012, it completed its Airport Link project in Brisbane and substantially advanced
the Victorian Desalination Project.
While conditions were challenging in the Middle East, the Habtoor Leighton Group was awarded several new projects, including construction of a people-mover system in Qatar and a medical centre in Saudi Arabia.
Progress also continued to be made on the recovery of legacy receivables, Mr Tyrwhitt said.
Work in hand, as at 30 September 2012, was $45.3 billion, which was broadly in line with June 2012 levels after adjusting for the sale of Thiess Waste Management and foreign exchange movements.
Mr Tyrwhitt said the company’s immediate focus was on strengthening the balance sheet, with initiatives to reduce working capital requirements, tighten capital allocation and extend the duration of financings.
The Thiess Waste Management sale was finalised for a profit of $115 million before tax and $81 million after tax.
Leighton has also sought expressions of interest in its non-core telecommunications infrastructure assets.
