New ETF Book by Larry Connors - Click here to read more
Lend Lease chief executive Steve McCann said there was a general shortage of housing in Australia, which gave him confidence that the downturn in the housing sector would "bottom out" and start to recover, hopefully soon.
"We don't see massive pressure on prices, and it will take some time for the economy to get back into full swing, and that should result in the right sort of balance there, we think," Mr McCann told ABC television on Sunday.
Mr McCann said the situation was different to the United States, where some areas had been "horribly overbuilt" and house prices had fallen significantly.
"We don't have much of a presence in the US," Mr McCann said.
He said that in London, in the United Kingdom where Lend Lease was focused, the housing market was in a similar position to that of Australia.
"There's a significant housing shortage, and the amount of building approvals in the last two years in London has been well short of what's required to meet demand," he said.
"So, again, there are signs that in the medium to longer term that market should be quite robust."
Mr McCann affirmed that Lend Lease was on track to achieve an annual net operating profit of around A$300 million (US$238.41 million).
In May, Lend Lease revised down its guidance for full year net operating profit for the 12 months ending June 30, 2009 to an operating profit after tax of about $300 million.
"The market expectation is around the A$300 million number, and we're still on track to deliver that," Mr McCann said on Sunday.
Mr McCann said the group's construction arm, Bovis Lend Lease, was getting more work from government contracts, and the proportion or earnings in Australia coming from government work was now around 50 per cent.
"It was a lot lower than that historically, and we're hoping that in the next week or so, we'll announce another schools project, which will take the total amount of schools projects we're procured to over a billion dollars," he said.
Mr McCann also said that Lend Lease had not lost a potential A$3 billion contract with the London City Council over the redevelopment of the Elephant and Castle neighbourhood, a 23-hectare area some 3km from London's West End.
Mr McCann said that although an exclusivity period for negotiations with the council had recently expired, Lend Lease was still in talks with the council.
"The reality is it will come down to whether it is a commercially viable project in the short term," Mr McCann said.
(AAP) rw
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
