Steep profit plunge

Leighton Holdings has seen its net profits fall 41% for the nine months to March 31.

Leighton Holdings has seen its net profits fall 41% for the nine months to March 31, the company announced today.

The construction company’s profits for the third quarter fell to $220 million from $375 million in the previous corresponding period.

According to the company, profits were impacted by $15 million in asset impairments on top of $175 million of writedowns in the first half.

Leighton chief executive Wal King said that despite the drop, Leighton’s financial position remains solid.

“We have a diversified portfolio of contracting and project development work across our core markets of infrastructure, resources and property, in Australia, Asia and the Gulf region,” he said.

“This diversity is helping to dilute the effects of the global financial crisis and positions us well for the longer term.”

Leighton today announced that it was set to participate in rival MacMahon Holdings attempt to raise $60 million through share placements, agreeing to increase its stake in the smaller company from 17.5% to a maximum of 19.9%.

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