Half-year profits up at Lend Lease

Property developer Lend Lease reported a +10.5% increase in net profit to AUS$ 227 million (US$ 229 million) for the six months to December 2010.

The higher profit came despite a dip in group revenue. Increased revenues from its Australian business unit were offset by declines in Asia, Europe and the Americas, leading to a -AUS$ 1.2 billion (US$ 1.2 billion) drop in overall sales to AUS$ 4.4 billion (US$ 4.4 billion) for the half-year period.

In July last year, Lend Lease reorganised its business and created a regional management structure focussed on these four geographical areas.

Asset sales totalling over AUS$ 300 million (US$ 304 million), including the sale of the group's ownership of a shopping centre in Scotland and divestment of UK public private partnerships, also helped push profits higher.

Group CEO and managing director Steve McCann said the company saw encouraging signs in the international arena, underpinned by expected growth in its Asian platform.

"The Australian economy continues to perform well and underpins the strength of the construction and infrastructure sectors. The acquisition of Valemus and the progress we have made on our key projects ensures we are well placed to capitalise on this strength," Mr McCann said.

Lend Lease acquired Bilfinger Berger's Australian construction business, Valemus for AU$ 960 million (US$ 966 million) in December last year. The deal is expected to close in the first quarter of 2011.