Leighton reports $4.5 billion work in hand at end of first quarter and another good year ahead

Issue Date:  23 October 1998
Issued By:  Leighton Holdings Limited

Leighton Holdings Limited today announced that work in hand at 30 September 1998 remained at a high level of $4.5 billion. This compares to a record $4.77 billion at 30 June and $4.0 billion at 30 September last year.

Chief Executive, Mr Wal King, said that the level of work being undertaken by Group companies was at record levels and revenue in 1998/99 was expected to exceed last year.

"In Australia, we are continuing to grow some of our diversified businesses such as telecommunications," he said.

"Over the past three months $95 million of new telecommunications work has been won. In addition, our subsidiary Visionstream has recently secured a contract with Telstra valued at approximately $90 million to undertake a major rehabilitation of its copper wire Customer Access Network.

"Due to be completed by June 1999, work will start immediately on this significant programme with Visionstream involved in testing and design through to detailed installation activities," said Mr King.

"Whilst the outlook for the Australian construction market is for growth to start slowing, governments are focusing on developing infrastructure projects which will generate jobs post 2000.

"The $3.5 billion Very High Speed Train project between Sydney and Canberra is a good example of government and industry working together to provide visionary infrastructure which will stimulate economic activity and employment.

"The Speedrail Group, a joint venture between Leighton Contractors and ALSTOM, is moving forward with detailed patronage and financial analysis to ensure final contracts and a start to work in January 2000," he said.

"In Asia, work in hand has dropped slightly to $750 million. The outlook for Hong Kong remains positive with a number of large infrastructure projects out to tender.

"We are pursuing a number of good mining opportunities in Indonesia, where we secured more than $60 million in new work during the period. We are also pursuing construction and mining opportunities in the Philippines which should continue to develop our business in that country.

"Elsewhere in Asia, prospects are extremely limited," said Mr King.

Overall, the outlook for the Group remains favourable with another good year ahead. Operating performance is in line with budget for the year.

ENDS

Issued by: Leighton Holdings Limited
ACN 004 482 982

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

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