Leighton Holdings says the economic tide is coming back in and it is well positioned to capitalise.
Australia's largest construction company recorded a 28 per cent fall in annual net profit for the year to June 30, but has forecast net profit to return to 2007-08 levels of about $600 million in the current year.
Early this afternoon, Leighton shares were up $2.12, or 6.83 per cent, at $33.15.
Leighton's 2008-09 net profit of $440 million was affected by approximately $170 million in impairments in its investments in toll road projects in Brisbane and Melbourne.
Chief executive Wal King described Leighton's property division as a "sad'' component of the group in 2008-09, as it recorded a 17 per cent drop in revenue and no growth in work in hand due to lack of credit and weaker demand.
Group revenue for the year to June 30 was $18.3 billion, up 26 per cent from $14.5 billion in the previous year.
Infrastructure contributed $10.4 billion in revenue, resources $5 billion and building and property $2.9 billion.
Leighton is well positioned to move forward in 2009-10 and beyond, Mr King said, due to its geographic mix and range of products and projects.
"We're always looking to move ahead, and the company always will move ahead,'' he told journalists.
"The tide is coming in, and every time the tide has come in it's always gone to a new high watermark.
"We're indicating that, from 2010, the workload will go up and there's no doubt that work levels will go over $40 billion.''
Leighton had $37 billion in work in hand at June 30, up from $30.3 billion at the corresponding point last year.
Up to $400 billion in work in the United Arab Emirates was on hold at June 30, and Mr King said a lot of work in Dubai had been lost.
But the Middle East region remained strong, he said.
"The Middle East is not Dubai; Dubai is part of the Middle East,'' Mr King said.
"There is no doubt, in Dubai, there've been a number of cancellations that affected us and a number of others, and a number of projects have stopped. But new work is available in the Middle East, and particularly in Abu Dhabi (which) is moving very strongly.''
Leighton's Middle East entity, Al Habtoor Leighton Group, currently is bidding for over $8 billion in work in Abu Dhabi alone, Mr King said.
Mongolia, Hong Kong and Indonesia also are positioned for strong growth in the short term, he said.
Locally, federal and state spending on infrastructure projects will be a driver of revenue growth in the years ahead, with transport and the national broadband projects highlighted by Leighton.
Mr King forecast revenue of over $19 billion in 2009-10, and net profit of around $600 million, subject to further investment impairments.
Such a result would provide "a good base'' for Leighton to resume profit and revenue growth in 2011 and beyond, Mr King said.
Leighton declared a fully franked final dividend of 55 cents, down from 85 cents in the prior year.The full year dividend was a fully franked $1.15.
AAP