Leighton increases provision for Spencer Street Station, now expects stronger 2005 result

Issue Date:  04 August 2004
Issued By:  Leighton Holdings Limited

Company Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000

Re: Leighton increases provision for Spencer Street Station, now expects stronger 2005 result

Dear Sir,

Please find attached a copy of a media release to be issued today by Leighton Holdings Limited.

Yours sincerely,


A.J. MOIR
Company Secretary

Leighton increases provision for Spencer Street Station, now expects stronger 2005 result

Issue Date: 4 August 2004
Issued by: Leighton Holdings Limited

Leighton Holdings Limited announced that it has taken a further provision of $60 million before tax ($42 million after tax) on the Spencer Street Station project, in addition to the provisions taken at the 3rd Quarter in May. The Group now expects to report a full year profit of $110 million after tax for 2004.

Chief Executive, Mr Wal King, said that since the announcement of provisions in May the company has continued to evaluate the forecast costs and time to complete in light of current and anticipated progress.

“The total provision now taken allows us to be confident about reporting a much stronger result this coming year. Based on current forecasts we expect to report a profit of around $180 million after tax in 2005,” said Mr King.

“Whilst access to the Spencer Street Station site remains difficult, some progress has been made in resolving impediments to our construction program.

“In order to develop a greater level of cooperation on the project, we have established a dialogue with the Victorian Government at ministerial and senior official level. We have asked the Government to put in place a high level process to assist us in overcoming the roadblocks and believe we will receive a positive response to this request,” said Mr King.

“In our discussions, the Government has indicated that they will make all reasonable efforts to facilitate Leighton’s completion of the project as soon as practically possible.

“While the impact of Spencer Street Station is extremely disappointing, the Group’s underlying performance remains very strong. All operating companies, with the exception of Leighton Contractors, continue to perform well,” he said.

“We have been awarded over $8 billion of work during the year, taking work in hand to a record $13 billion at 30 June and total revenue for the period should be around $6 billion.

“The Group’s balance sheet is very healthy with gross cash of over $700 million and net cash of around $500 million as at 30 June 2004. The final dividend for the year is expected to be maintained at 27 cents per share, the same as last year,” said Mr King.

The Group’s full year results will be announced on 19 August 2004.

Issued by:
Leighton Holdings Limited    
A.C.N. 004 482 982  A.B.N. 57 004 482 982    
www.leighton.com.au     

For further information:
MR WAL KING AO    
Chief Executive Officer     
Ph:  (02) 9925 6912    

MR DIETER ADAMSAS
Deputy Chief Executive Officer & CFO
Ph:  (02) 9925 6923