Leighton Holdings has reported a 41% drop in nine-month profit after booking further writedowns in the third quarter of its financial year.
Australia's largest constructor said net profit for the nine months to March 31 was $220 million, down from $375 million in the previous corresponding period.
In the third quarter, Leighton booked $15 million in asset impairments on top of $170 million of writedowns in the first half.
Chief executive Wal King said the group's 2008-09 revenue will approach $19 billion while net profit will be about $430 million, including the writedowns.
That would be below its net profit of $607.9 million in 2007-08.
"However the group is continuing to face pressure on its operating performance for the remainder of the financial year," Mr King said in a statement.
"The final result will be subject to market conditions, including currency fluctuations and asset valuations, for the remainder of this financial year.
"The company expects to pay a final dividend, consistent with the revised profit for the full year, both of which will be determined in August."
Earlier this week Leighton said full year profit before significant items was unlikely to vary by more than 15 per cent on the previous year.
Mr King said the company's work in hand at March 31 was $36.5 billion, up from $28.1 billion at the same time last year.
Revenue for the nine-months was $13.7 billion, up 37 per cent on $10 billion in the previous corresponding period.
"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. This diversity is helping to dilute the effects of the global financial crisis and positions us well for the longer term," Mr King said.
He highlighted contract wins for Leighton on mining and construction projects in Australia over the third quarter, but said Dubai had seen some contract losses.
A joint venture involving the Al Habtoor Leighton Group recently withdrew from a Dubai Airport project worth $350 million to the group, due to an inability to reach acceptable contract terms.
"The Gulf region, particularly Dubai, has experienced some uncertainty due to the impact of the global financial crisis," Mr King said.
"We have seen some new work awarded and other projects cancelled or deferred."
AAP