Another loss for Leighton
08 May 2012
Australian contractor Leighton reported a first quarter net loss of AU$ 80 million (US$ 81 million) after being hit by further losses on two major contracts.
Leighton's beleaguered Brisbane Airport Link (APL) project in Queensland, and Desalination Project (VDP) project in Victoria recorded net write-downs of AU$ 148 million (US$ 150 million) and AU$ 80 million (US$ 81 million) respectively during the three months to 31 March, 2012.
The result comes after write-downs on both projects helped drag the company to a full-year loss and subsequent credit downgrade in 2011.
Leighton - a subsidiary of German contractor Hochtief, which itself is majority owned by Spanish company ACS - also said the opening of the Brisbane airport link would be delayed until 20 August, instead of the scheduled 30 June completion date.
Leighton CEO Hamish Tyrwhitt said he was "very disappointed" with the project write downs, which he said detracted from the otherwise sound performance of the business.
"Despite these losses, the portfolio of projects is performing well," said Mr Tyrwhitt.
Leighton reported first quarter revenues of AU$ 5.1 billion (US$ 5.2 billion), up from AU$ 4.1 billion (US$ 4.2 billion) during the first three months of 2011. The company also reconfirmed its full year underlying net profit guidance of between AU$ 400 million (US$ 406 million) and AU$ 450 million (US$ 457 million) - a forecast which was revised downwards in March.
