Leighton Posts Massive Loss, Hopes to Bounce Back with $46B in Projects
Leighton Holdings Ltd (ASX: LEI) posted an after tax loss of $409m for the 2010/11 financial year, but targets to bounce back with its string of new projects on hand.
Chief Executive Officer David Stewart, said this was an extremely disappointing result brought about by a number of challenges, particularly the Airport Link and Victorian Desalination projects, which the company has bought to account in the financial year.
“Pleasingly though, the Leighton Group maintains a strong level of work in hand, has a strong balance sheet and anticipates reporting an after tax profit of between $600-650m for the 12 months to 30 June 2012. This guidance does not include the potential impacts of the sale of the HWE Mining iron ore business,” he said.
“Leighton Contractors, in joint venture, will build the $1.85 billion New Royal Adelaide Hospital, the largest and most advanced hospital project ever undertaken in Australia.
Recently, John Holland was awarded the construction management of the $1.2 billion New Children's Hospital in Western Australia (John Holland’s share is valued at $800 million),” Stewart said.
“The Group’s work in hand at 30 June 2011 was 11% higher than last year, reaching a new high of $46.2 billion, with 69% coming from Australia and 31% from offshore markets. The order book was boosted by the award of some $26 billion worth of new work, extensions and variations during the period.
Shares in Leighton rose as much as 7.6 percent higher on Monday. Investors were encouraged to focus on the $46 billion work in hand and its 2011-12 profit outlook instead of the massive full-year loss and absence of a final dividend.