re: News: Leighton Holdings’ Half Year Report...
Outlook for the Full Year For the 2010/11 financial year the Group expects to report full year revenue of almost $20 billion and net profit after tax of around $480 million. The final result and full year dividend are however subject to market and operating conditions, including weather condition in Australia and overseas, for the remainder of this financial year. Long-Term Outlook Markets and Outlook The Australian economy performed well for most of 2010, but declined towards year end resulting in lower real GDP growth estimates of around 2.6% for the year. The outlook for 2011 remains positive, with GDP growth of 3% or higher generally expected. The recent cyclone and floods in Queensland will have a negative economic effect in the first quarter of 2011, but thereafter, the rebuilding, clean-up and repair activities will be a positive for the economy. However, funding for major infrastructure projects may be delayed or diverted to reconstruction programs. Meanwhile, strong demand for commodities, notably from China and India, continues to support robust capital investment and positive growth in Australian economic output. The current unemployment rate of around 5% is lower than a year ago and well below other advanced economies. Unemployment is expected to continue falling in 2011, trending down towards 4% by early 2012, a 37- year low. The Federal Government recently relaxed restrictions around the 457 Visa program that should ease pressure on sourcing skilled labour. Inflation is currently within the RBA target range at below 3% per annum. The world economy is forecast to continue growing solidly during 2011. Global equity markets continue to rise, bank lending conditions have become less tight and the volume of world trade has returned to pre-crisis levels. Growth in private sector demand is strengthening and is well positioned to take up the slack left by a gradual removal of Government stimulus programs. World economic growth will continue to be led by the emerging markets. The IMF is forecasting 6.5% growth in emerging and developing economies in 2011, compared with 2.5% growth in the advanced economies. Whilst some uncertainty remains for nations suffering high sovereign debt positions, the general consensus is that the global economy will expand at around 4 % in 2011. In accordance with the overall economic outlook, the global construction market is expected to grow solidly in 2011 after a period of decline following the global financial crisis. Australia remains the Group?s predominant earnings base, however, we are well positioned to access the strong growth prospects of Asia and emerging markets. The Group is also exploring contract mining opportunities in parts of Africa on a limited basis.
LEI Price at posting:
$30.03 Sentiment: None Disclosure: Held
