By Rhiannon Hoyle
SYDNEY--Leighton Holdings Ltd. (LEI.AU), Australia's largest
contractor, said its annual net profit rose 13% as it replaced
contracts in mining where investment is in a deepening slump with
building work from hospitals to hotel resorts.
Sydney-based Leighton has also targeted higher revenues from
overseas as it looks to rebuild credibility with investors after
several difficult years, marred by delays and cost overruns on
major Australian infrastructure projects.
Leighton reported a net profit of 508.7 million Australian
dollars (US$458.0 million) for the year through December, up from
A$450.1 million in 2012. It maintained its final dividend 60
Australian cents a share.
Australia's resources companies have closed mines, delayed
projects and laid off workers to protect profits from falling
commodity prices and a strong Australian dollar. That has hurt
mining services companies such as Leighton, which specialize in
running projects on behalf of the mine owners or carrying out
engineering work. Leighton said its work pipeline had fallen 3% on
year.
Leighton said its full-year underlying earnings rose to A$584
million from A$448 million a year earlier. That was underpinned by
an increase in the company's full-year net margin to 2.4% from 1.9%
in 2012.
Leighton forecast a full-year underlying profit of between A$540
million and A$620 million for 2014.
"Improved profitability will be driven by margin expansion
initiatives, as top line growth is not anticipated amid the current
tough market conditions," the company said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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