Leighton Holdings’ chairman, David Mortimer, reports that the company had recorded a solid operating performance in a year which was impacted by the impairment of asset values. The Group earned a profit after tax of $440 million after impairments and is the third largest profit ever made by the company.

Total revenue, including joint ventures and associates, was up by 26 per cent to $18.3 billion while work in hand at 30 June 2009 was up by 22 per cent to $37 billion. The Group also paid a dividend of 115 cents per share and earned an average return on equity of 23 per cent placing the Group 28th on the list of top 100 listed Australian companies by market capitalisation.

“The 2010 financial year has started well for the Company with total revenue for the first quarter to 30 September 2009 up 10 per cent to $4.5 billion. Work in hand at 30 September stood at $38.2 billion, up by $1.2 billion since 30 June 2009. "In addition, the Group is preferred on another $4 billion worth of work which should be awarded in the near future,” said Mortimer.

A decline in some of the Group’s core markets has been countered by significant spending by Governments to stimulate economic activity both in Australia and overseas. For the 2010 financial year, the Group is confident that revenue will exceed $19 billion and expects a net profit after tax of around $600 million, subject to any further asset impairments.

Leighton’s chief executive, Wal King, said: “We see a positive long term outlook for infrastructure spending in Australia; buoyed by our growing population, catch up spending after long periods of underinvestment and a growing involvement of the private sector in financing and development. Engineering construction is expected to grow to $140 billion by 2018 – more than doubling within a decade – which augurs well for long-term construction opportunities.”