Record profit for Leighton despite ?slow period? in Dubai
Australian contractor Leighton Holdings has posted record profits but maintains it is still experiencing difficulties in the Middle East.
Australian contractor Leighton Holdings has posted record profits but maintains it is still experiencing difficulties in the Middle East.
The company bought a 45% stake in Al Habtoor in 2008 for US $776 but has seen its investment plummet since. According to reports in The Australian, Al Habtoor has been given a December 31 deadline to secure new contracts.
Despite the problems the company has posted a 39% rise in profits and growth is set to continue until the end of the financial year.
Chief executive Wal King is quoted as saying: "The outlook for the group remains positive based on a record level of work-in-hand, a strong competitive position and continuing economic recovery in our major markets.
We remain positive for the 2011 financial year and expect to report an increased revenue and operating profit.
A spokesperson for the company told The Big Project: “Some projects have been delayed because of financing, however other part of the Middle East are looking stronger. It’s a big region and we’re tending to focus now on Abu Dhabi, Qatar and Saudi Arabia, so we’re confident of moving forward.
“We’re the largest construction group in the region and happy with our presence. Dubai is just taking a little longer to recover. From a group perspective this is a slow period in Dubai.”
