Construction firm Leighton Holdings Ltd. (LGTHF.PK, LEI.AX), the Australian unit of Germany's Hochtief (HOCFF.PK), Monday reported a profit for its first quarter, compared to a loss last year, reflecting growth in revenues. The company also reaffirmed its underlying profit view for the full year 2013.
Leighton said it generated revenues amid a challenging macroeconomic environment especially in contract mining, as well as adverse weather conditions in Queensland and Western Australia. Looking ahead, the company said it is targeting projects with good margins, rather than a top-line growth.
Hamish Tyrwhitt, chief executive officer of the company stated, "This result reflects the advantages of the Group's diverse business portfolio, benefitting from both our geographic spread and the range of sectors in which we operate."
The firm stated that sale of its telecommunication infrastructure assets during the period will unlock an enterprise value of around A$885 million.
In the first quarter, profit attributable to members was A$123 million, compared to a loss of A$80 million in the previous year.
Quarterly revenues grew to A$5.35 billion from A$5.09 billion in the prior year. Revenue-Group- totaled A$4.86 billion, up from A$4.14 billion a year earlier.
Leighton said it received over A$4 billion of work during the first quarter, taking total work in hand to A$42.2 billion.
Leighton's gearing grew to 47.7 percent from 35 percent, driven by early payment of the equity in BrisConnections and the scheduled final dividend payment, each of A$200 million, together with seasonal deterioration in working capital.
The company maintained its full-year underlying Net Profit after Tax or NPAT, view in the range of A$520 million to A$600 million and a gearing level within its target band of 25 to 35 percent.
Separately, the firm announced that Leighton Properties has agreed to sell three commercial buildings planned within the Kings Square mixed-use development in Perth for A$434.8 million. Australian real estate groups Dexus Property Group and Dexus Wholesale Property Fund have entered into an agreement to purchase towers KS1, KS2 and KS3.
Leighton Properties also announced signing of two anchor tenancies within the Kings Square development. Energy giant Shell Australia has signed in KS2 and John Holland, a member of the Leighton Group, will relocate its Western Australian headquarters to Kings Square with a 5,360 sqm tenancy.
Leighton Holdings shares closed Monday's trading at A$19.43, up 2.21 percent, on a volume of 966 thousand shares on the Australian Securities Exchange.
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