LEIGHTON HOLDINGS SHARES FALL 10PCT AFTER PROFIT FORECAST CUT

Mon. January 05, 2009; Posted: 07:58 PM

SYDNEY, Jan 06, 2009 (AsiaPulse via COMTEX) -- LGTHF | Quote | Chart | News | PowerRating -- Shares in Australia's biggest construction company Leighton Holdings Ltd (ASX:LEI) plunged almost 10 per cent after it cut its profit forecast amid asset write downs of A$200 million (US$143.5 million).

Chief executive Wal King said that by December 31, 2008, the value of listed investments had fallen by another A$200 million since September 30, 2008 as a result of the global financial crisis.

"The performance of the group operating companies continues to be strong, with the exception of Leighton Properties," Mr King said.

However asset write downs for mining services group Macmahon Holdings (ASX:MAH), toll roads Connect East and BrisConnections, would cut its first-half net profit by A$170 million after tax.

The operating result for the six months to December 31, prior to the impact of the investment values, is expected to be about A$270 million, up about eight per cent on the prior corresponding period.

Leighton expects to report a net operating result of about A$650 million compared to 2008's full year result of A$608 million.

Mr King said work in hand has increased to about A$37 billion at the end of December compared to A$35.3 billion at September 30, 2008.

Leighton is due to release its first-half results on February 12.

It will maintain its interim and full year dividends at the same level as last year.

Leighton shares were down A$2.78 or 9.81 per cent at A$25.55 at 1109 AEDT.

(AAP)

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