Leighton report massive loss

Leighton Holdings has downgraded its previous lead ore crusher guidance from a profit of $480 million after tax to a loss of $427 million.

The group says this revision is due to write backs of profits from the Airport Link project in Queensland and the Victorian Desalination project, as well as an impairment of Leighton’s investment in the Habtoor Leighton Group (HLG).

Leighton CEO David Stewart labelled this result as extremely disappointing, but stated that “we are acting decisively to deal with write-backs on these two problem projects and with the investment in the Middle East.

“While it is frustrating to have to deal with the financial consequences, it does now leave Leighton well positioned to return to more normalised growth and earnings in 2011/12 and beyond,” Stewart said.

It stated that poor weather, designing, engineering, planning and access difficulties were behind delays on the Airport Link project.

“Ground conditions in gypsum mining crusher some areas have proved more difficult and variable than anticipated.

"Acceleration measures and prolongation costs required to overcome project delays resulted in major increases to the forecast final cost,” he said.

At the Desalination project in Wonthaggi, Victoria, wet and windy weather has continued and is expected to impact the delivery of first water.

“Poor productivity and inclement weather have impacted the construction on the site, in particular the reverse osmosis plant.”

In the Middle East, Leighton described the conditions as volatile, which has slowed the winning of new projects.

However “moving forward we well be changing quartz crusher the way we tender and deliver major projects,” Stewart said.

According to the company work at hand stands at $46 billion, $4.2 billion of which has been awarded since December 2010.