$220m profit for Leighton in 9 months

The result was impacted by the recognition of $175m of post-tax asset impairments, reported in December 2008, and a further $15m recorded during the third quarter.
Leightons chief executive Wal King, reported that against the backdrop of the current environment, that the groups operating profit remains solid.
We have a diversified portfolio of contracting and project development work across our core markets of infrastructure, resources and property in Australia, Asia and the Gulf. This is helping to dilute the effects of the global financial crisis and positions us well for the longer term.
Work in hand at 31 March 2009 stood at $36.5bn, up from $28.1bn at the same time last year while revenue for the nine months was up by 37% to $13.7bn, he said.
Hume bypass
Highlights for the March quarter included a Leighton Contractors led alliance signing an agreement with the Roads and Traffic Authority (RTA) to deliver the $225m Tarcutta Bypass project on the Hume Hwy in NSW.
April saw the award to a consortium including Leighton Contractors of a $1.1bn contract to develop the Queensland Governments landmark SEQ Public PPP schools project. Seven new schools will be built in high-growth areas of South East Queensland in a construction contract worth $245m to Leighton, King said.
In WA, HWE Mining was awarded a five-year contract extension worth approximately $400 million at the Orebody 23/25 mine in the Pilbara region. In April, in a joint venture with Macmahon, Leighton was awarded a contract valued at more than $500m, to develop BHP Billiton Iron Ores rapid growth 5 rail project (RGP5), also in the Pilbara.
Indonesian coal
In Indonesia, Thiess was awarded a $US1.52bn contract extension by PT Arutmin, for the operation of the Senakin and Satui coal mines in South Kalimantan. Thiess will continue its existing scope of work and ramp up production to 12mt of coal and 120m m of overburden a year.
Leighton Asia secured its first mining work in Mongolia, a $350m, six year mining contract for the Ukhaakhudag coal mine project. The contract works includes the removal of overburden and mining of the coal, plus provision of mining planning and engineering services.
The Gulf Region, particularly Dubai, has experienced some uncertainty due to the impact of the global financial crisis (GFC). We have seen some new work awarded and other projects cancelled or deferred.
Thiess Services Middle East, in joint venture with the Al Habtoor Leighton Group, signed a 15 year waste management concession agreement worth $475mn for the management of construction and demolition debris for the Emirate of Abu Dhabi.
In Dubai, a JV including the Al Habtoor Leighton Group and the client mutually agreed to withdraw from the Dubai Airport Concourse 3 project due to the parties inability to conclude an acceptable contract. The Leighton Groups share of the project was worth $350m.
Personnel changes
In April, a number of senior management changes were made to further enhance the management of the company. David Stewart, currently MD of the John Holland Group, will be appointed as an additional COO for Leighton Holdings, effective 1 July 2009. Glenn Palin, currently COO construction within John Holland, will be appointed MD of that company effective 1 July 2009.
Laurie Voyer, currently deputy MD of Leighton Contractors, will be relocating to Dubai, initially reporting to David Savage. Voyer will subsequently be appointed MD of the Groups operations in the Gulf after an appropriate transitional period. I congratulate all of these managers on their appointments, he said.
For the 2008/2009 financial year, the Group expects to report full year revenue approaching $19bn and net profit after tax reduced to approximately $430m, which includes the write down of investment values already recognised. However the group is continuing to face pressure on its operating performance for the remainder of the financial year.
The company expects to pay a final dividend, consistent with the revised profit for the full year, both of which will be determined in August, King said.