Leighton on profit target
LEIGHTON Holdings says it is on track to achieve its expected full-year profit of more than $600 million, as the world's biggest contract miner looks at expansion overseas.
Leighton chief executive Wal King also reiterated the target profit of $900 million in five years' time.
But he says mining projects will go overseas unless the government alters the proposed resource rent tax, adding to the case for Leighton to pursue expansion offshore, particularly in Africa and Mongolia.
Mr King has expanded Leighton's opportunities in the Middle East, Mongolia and Indonesia as existing clients offered new opportunities in lower-cost countries.
Moody's Investors Service supported the company's forecasts, affirming Leighton's Baa1 issuer rating while revising the outlook to stable from negative, saying that the company's operating environment was likely to improve.
Mr King said he believed the company's revenue would reach $29 billion with $50 billion of work in hand in five years.
Revenue for the year to June was expected to be $18.5 billion and work in hand was $37.5 billion at the end of March.
Leighton, which is also Australia's biggest construction company, closed down 42¢, or 1.29 per cent, at $32.04 yesterday.
AAP
NICOLE STEVENS
June 23, 2010
Leighton chief executive Wal King also reiterated the target profit of $900 million in five years' time.
But he says mining projects will go overseas unless the government alters the proposed resource rent tax, adding to the case for Leighton to pursue expansion offshore, particularly in Africa and Mongolia.
Mr King has expanded Leighton's opportunities in the Middle East, Mongolia and Indonesia as existing clients offered new opportunities in lower-cost countries.
Moody's Investors Service supported the company's forecasts, affirming Leighton's Baa1 issuer rating while revising the outlook to stable from negative, saying that the company's operating environment was likely to improve.
Mr King said he believed the company's revenue would reach $29 billion with $50 billion of work in hand in five years.
Revenue for the year to June was expected to be $18.5 billion and work in hand was $37.5 billion at the end of March.
Leighton, which is also Australia's biggest construction company, closed down 42¢, or 1.29 per cent, at $32.04 yesterday.
AAP
NICOLE STEVENS
June 23, 2010
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