SYDNEY, Oct 27 AAP - Downer EDI Ltd's strong forward order book placed it in a good position for the future after a sixth successive year of earnings and profit increases, managing director Stephen Gillies said today. Shares in the engineering group climbed more than seven per cent in early September after it announced new road, rail, power and maintenance contracts worth more than $550 million to its forward order book. The new work, which covers the company's engineering (power), infrastructure and rail divisions in Australia, New Zealand and the Pacific region, has taken the company's forward order book to more than $6.3 billion. "The forward order book at the close of the financial year was approaching $6 billion, up from $4.5 billion, and today stands at approximately $6.3 billion, which should support growth over the next few years," Mr Gillies said in his speech to today's annual general meeting. "The outlook for Downer EDI is positive for 2004. "We expect another strong year and have targeted increases in gross revenue and (earnings before interest, tax, amortisation and depreciation (EBITA) of better than 15 per cent over last year, with the prospects for growth particularly encouraging in the power and infrastructure sectors." Mr Gillies said earnings per share would continue to improve given the company's strengthening capital base and lack of need for new capital to support further growth initiatives. "We will maintain our ongoing focus on targeting a strong balance sheet with improved earnings per share," he said. Mr Gillies said a strong platform for growth in the Asia Pacific region has been established with the addition of Singapore based CPG Corp, which brought with it 2,000 highly skilled staff. "The full year benefits of the acquisition of CPG will apply for 2004 and we see continuing benefits in the years ahead as their design, master planning and facilities management capabilities are utilised across the total group," he said. Downer's train building business, EDI Rail, has come under fire recently over problems with its hi-tech Millennium rail project in NSW. At 1012 AEDT, Downer EDI shares were up one cent at 94 cents. AAP
