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Chances for profit curbed,
Leighton chairman says
SYDNEY: Poor prospects for in
creased sales during 1984-85 for Aus
tralia's largest construction group,
Leighton Holdings Ltd, had curbed
the group's chances of further profit
growth in the current year, Leighton's
chairman, Sir William Pettingell, said
yesterday.
Speaking after the company's an
nual general meeting in Sydney, Sir
William said intense competition in
the construction industry in Aus
tralia, South-East Asia and the US
meant sales were unlikely to increase
in the 1984-85 year.
"We are budgeting on a slight rise
in profit for the current year but the
challenge is for management to
achieve this within current sales
levels," he said.
Leighton reported a 50 per cent rise
in net operating profit last August to
a record $21.1 million for the year
ended June 30 and a 78 per cent rise
in turnover to $579 million.
The profit and turnover rise reflect
ed the merger of Thiess Contractors
Pty Ltd and Leighton in July, 1983.
Sir William said Leighton had now
completed a major expansion pro
gram with the Thicss merger, the
acquisition of a 50 per cent interest
in US construction company Green
Holding Inc, and more recently the
acquisition of Queensland-based Dix
on Homes and a 50 per cent interest
in South-east Asian construction
group Ipcomarine.
"The task ahead of us is to utilise
the new resources we have acquired
both within Australia and overseas to
achieve maximum results," he said.
The merger with Thicss resulted in
the West German construction group
Hochtief acquiring a 40 per cent in
terest in Leighton.
Shareholders at the meeting voted
to increase the company's authorised
capital to 200 million 50c shares from
100 million.
Directors recommended increasing
the authorised capital base because
the expansion program and a one-for
five rights issue announced in August
had resulted in a substantia! increase
in issued capital.
"A highpoint of the last three
months has been the award to
Leighton Major Projects of a hospital
complex in Malayasia for $A52 mil
lion," he said.
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