Leighton back to profit in 2012

Australian contractor Leighton reported net profit of AU$ 450 million (US$ 466 million) for 2012, reversing the AU$ 279 million (US$ 289 million) net loss it reported in 2011.

The company said it had now completed the overrunning projects that had been largely responsible for the 2011 loss.

Revenues were up +6% year-on year to AU$ 23 billion (US$ 24 billion) for the 12 months to 31 December, 2012.

Leighton CEO Hamish Tyrwhitt said the company had consolidated its balance sheet and made progress on stabilising and rebasing the business.

“Looking at 2013, we will continue to reshape our operations, leading to net margin expansion and lower gearing, while managing our exposure to the Habtoor Leighton Group (HLG) and continuing to work proactively to create value for all our shareholders,” Mr Tyrwhitt said.

HLG is Leighton’s joint venture in the Middle East, in which it owns a 45% stake. Leighton said the value of its investment in HLG decreased from AU$ 379.4 million (US$ 393 million) at the start of last year to AU$ 298 (US$ 310 million) by the end of 2012, as a result of foreign exchange losses and impairment charges due to revised forecasts.

The company said the economic downturn in the Middle East and North Africa region continued to delay payments from clients.