Leighton Holdings may have answered a ticklish question from the ASX yesterday about why it didn't update the market about its profit drop and writedowns faster than it did, but its problems in the troubled Middle Eastern state of Dubai seem to be deeper than thought last week.

Leighton told the market yesterday it didn't have enough certainty on its earnings to issue a downgrade earlier than April 11 (last Monday).

In its query the ASX had questioned the timing of Leighton's $900 million downgrade, which saw Australia's largest construction and contracting company revise its net profit for the year to the end of June from $480 million to a $427 million loss.

That $900 million turnaround caused the company to start raising capital and last week it gathered $514 million from big investors, including 54% holder, Hochtief of Germany. It will ask small shareholders from today for another $243 million at $22.50 a share.

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