AAP
Lend Lease Group has forecast a similar full year operating profit to the previous financial year and launched a $806 million capital raising to fund growth opportunities.
The property and construction group reported a net profit of $204.9 million for the six months to December 31, up from a loss of $596.4 million in the previous corresponding period attributable to asset writedowns and impairments.
First half operating profit, which excludes investment revaluations, was $187.9 million, up from $185.4 million in the previous corresponding period.
Chief executive Steve McCann said the group expects full year operating profit to be in line with the previous financial year's $307.5 million.
"Market conditions for our construction business in the US and Europe remain very difficult and our earnings have been impacted by the strong Australian dollar," he said in a statement.
"Nonetheless, Lend Lease continues to perform well despite these challenging conditions due to our diversified business model, mix of active and passive earnings and our focus on reducing overheads.
"For the year ending 30 June 2010, operating profit after tax is expected to be broadly in line with the year ended 30 June 2009, before the benefit of the capital raising."
Lend Lease declared a fully franked interim dividend of 20 cents, down from 25 cent in the previous corresponding period.
Proceeds of the fully underwritten capital raising will be used to accelerate selected development projects, fund Lend Lease's equity positions in public private partnerships (PPPs) and secure investment opportunities, Mr McCann said.
"We believe now is the right time to deploy capital as we are near the bottom of the cycle," he said.
"In the last six months, Lend Lease has secured development opportunities with an end value in excess of $12 billion.
"Raising additional capital will assist us to more readily execute our strategy and fully leverage our competitive strengths.
"In today's environment funding certainty is essential."
The capital raising will be conducted through a non renouncable five for 22 pro rata entitlement offer to institutional and retail shareholders.
New securities will rank equally with existing securities but will not be eligible for the interim dividend, the group said.
