Construction giant Leighton Holdings has reported a 39 per cent rise in annual profit and forecast further growth as economic conditions improve.
Leighton said net profit for the year to June 30 was $611.9 million, up from $440 million in the previous year.
Group revenue in the year to June was $18.6 billion, up two per cent on the previous corresponding period.
In early trade, Leighton shares rose as much as $1.02, or 3.5 per cent, to $29.92.
Leighton declared a fully franked final dividend of 85 cents per share, up from 55 cents in 2008/09, taking the full year payout to $1.50.
"The group expects to deliver an increased revenue and operating profit on the back of high levels of work in hand and gradually improving economic conditions in Australia and offshore," Leighton said on its outlook for fiscal 2011.
"However, the road ahead may be rocky as governments, corporations and markets work their way through the residual effects of the global financial crisis."
The company said a reduction in federal government stimulus spending may impact the Australian construction market, primarily at the smaller end of the scale.Private sector investment in infrastructure and resources is expected to increase as economic conditions improve, it said.
Activity in Australian commercial and industrial property construction remains weak and is likely to bottom in 2011, Leighton said.
A gradual improvement in credit market conditions and underlying demand may see commercial property recovering towards the end of 2010, but the outlook for industrial property is not expected to improve substantially until 2012.
In resources, demand for iron ore, coal, oil and gas, and gold will continue to increase, with China and India continuing solid economic growth, Leighton said.
The company’s long-term outlook remains positive due to record work in hand and continuing economic recovery in its major markets,’’ it said.
‘‘Based on current market projections, the group’s five-year aspirational goals of $50 billion work in hand, $30 billion of revenue and $900 million of profit after tax can be achieved through internally generated funds,’’ Leighton said.
AAP