Leighton confident of another year of growth

Issue Date:  04 November 1999
Issued By:  Leighton Holdings Limited

At Leighton Holdings Limited 38th Annual General Meeting held in Sydney today, Chairman MA (Tim) Besley AO, said that the outlook for the 1999/2000 financial year continues to be one of growth.

Mr Besley said that annual revenue should approach $3.5 billion and profit is expected to improve again this year.

At the end of the first quarter of this year, work in hand has remained steady at $4.15 billion.

“The success of the Group’s strategy in achieving diversity of its contracting and project development business is reflected in the strong results achieved over the past year,” said Mr Besley.

“Operating revenue increased to a new all time record of $3.2 billion and operating profit after tax increased by 18% to $121.8 million.

“A strong contribution was made once again by our Australian operations. Thiess Contractors was the year’s outstanding performer with record high levels of work in hand and an increasing diversification of activities.

“Results from the Group’s Asian operations were in line with the previous year which is a credit to the management who have successfully navigated their way through the recent turmoil,” said Mr Besley.

The total ordinary dividend for the year increased by 15% to 30 cents per share fully franked. The total dividend payment was $78.6 million which resulted in a payout ratio of 65%.

Chief Executive, Mr Wal King AM, said the general economic climate in Australia is expected to remain favourable and will provide the Group with new opportunities despite a downturn in construction in the run up to the Olympics.

“Growth is expected in the telecommunications and waste management industries and our balance sheet and diversified presence should serve us well,” said Mr King.

“We have made substantial progress in implementing our growth strategy through extending existing businesses and pursuing project developments and strategic investments.

“The proposed 70% investment in the Australian operations of John Holland will immediately add around $500 million to the Group’s annual workload. It will also provide us with a stronger presence in industries such as rail, health, defence and maintenance services.

“Leighton Contractors is concentrating on developing some major transport infrastructure projects and capitalising on its unique capability in the telecommunications market.

“Mining and the resources sector remains a prime focus for Thiess. Their long-term coal mining contracts and the recent investments and acquisitions in this area should provide Thiess with a good platform to grow their business.

“The general outlook for Asia is encouraging with most countries emerging from recession. Hong Kong, Indonesia and the Philippines will continue to be our major markets in the region.

“I am confident that 2000 will be another successful year,” said Mr King.

ENDS.

Issued by:
Leighton Holdings Limited
ACN 004 482 982

For further information:
Mr Wal King AM
Chief Executive Officer
Ph: (02) 9925 6912

Mr Dieter Adamsas
Director, Finance & Administration
Ph: (02) 9925 6923