Leighton exceeds profit forecast

Hochtief's Australian subsidiary Leighton said it expected to report +7% higher profits than it had previously forecast for the six months to 31 December 2011.

The contractor announced that, after the completion of a preliminary review of its profit results, it expected to post underlying profit after tax of approximately AU$ 270 million (US$ 278 million), against a guidance of AU$ 250 million (US$ 257 million).

Improved earnings from the company's operations in Australia and Asia have meant that Leighton now expects a net profit after tax of approximately AU$ 340 million (US$ 350 million) for the six-month period to 31 December 2011.

"The performance of our major projects - Airport Link and the Victorian Desalination Project (VDP) - has stabilised and we are making good progress in bringing them to completion. We remain on track to open Airport Link to traffic in June 2012 and expect to be producing first water by July 2012 at VDP," said Leighton chief executive, Mr Hamish Tyrwhitt.

The company's net profit forecast includes a capital gain of AU$ 169 million (US$ 174 million) after tax from the sale of HWE Mining, and write-downs of AU$49 million (US$50 million) after tax on its investments in BrisConnections and AU$50 million (US$51 million) on Habtoor Leighton Group - its subsidiary in the Middle East.

Mr Tyrwhitt also confirmed that the company expects to deliver an underlying profit after tax of between AU$ 600 million (US$ 618 million) and AU$650 million (US$ 670 million) for the 12-month period to 30 June 2012.

Leighton will report its profit results for the transitional six-month financial year to 31 December 2011 on 13 February 2012. The company is changing its financial year to align it with German parent company Hochtief, moving its year-end from 30 June to 31 December.