It expects to report a loss after tax of AU$427 million for the 2010/11financial year. Chief executive David Stewart said that whilst the result is extremely disappointing the company is acting decisively to deal with all its issues.
"Having recognised the write-backs and impairments, Leighton is now well positioned to return to more normal growth and earnings in 2011/12 and beyond,” he said.
“Looking forward, the Leighton Group is in solid shape with most of our major markets – particularly Australian infrastructure and resources, and the bulk of Asia – proving very attractive. At the end of March, work in hand stood at a record $46 billion which has a strong level of embedded profitability,” said Stewart.
“Since December 2010, the Leighton Group been awarded an additional $4.6bn in new work and currently there are approximately $4bn in contracts where the Group is in a preferred position. Leighton also has over $7bn worth of projects that are highly likely to be awarded in the next 12 months. We expect to return to profitability in 2011/12 and are currently forecasting to report a profit after tax in the range of $600 - $650 million.
“The outlook for infrastructure spending in Australia remains positive with growth expected in transport and utilities during 2011 and 2012. Spending on transport infrastructure is forecast to grow through to 2012 with particularly large increases expected in rail and ports."
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