profit growth to jump 30 percent

a terrific company.....now compare it to james hardie...profit falls 96%.....the difference between a GOOD company and a BAD company..........
james hardie ripped off customers, and consumers, then went offshore to rip pff the taxpayers....

Macmahon expects up to 30% profit growth
Email Print Normal font Large font August 20, 2008 - 9:47AM

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Engineering contractor Macmahon Holdings Ltd expects its profit for this year to grow at the higher end of its 20 to 30 per cent guidance range, after reporting a lift in full year earnings.

Macmahon on Wednesday reported a net profit for the 12 months to June 30 of $48.7 million, up 9.7 per cent on the prior corresponding period.

"Macmahon already has $1.2 billion of revenue secured for the 2009 full year and, as per previous guidance, is expecting to deliver annual profit growth of 20 to 30 per cent," the company said.

"Subject to the timing of new work, 2009 full year profit growth is likely be at the higher end of the 20 to 30 per cent range."

Macmahon said its outlook remained strong, with the company positioned to continue to benefit from the ongoing demand for mining and construction services, both within Australia and overseas.

"Notwithstanding the current turmoil in world financial markets and slowing economies, the demand for contracting services remains strong - particularly within the iron ore, coal and government sectors," the company said.

Macmahon said that while delays were occurring with some project start-ups, the overall volume of work being tendered remained high.

The company declared a final dividend of 3.5 cents per share, bringing the total dividend for the year to 5.5 cents.

Macmahon said it would focus on growing its strong presence in the Western Australian iron ore industry and expand its presence in the Queensland coal industry.

The company would also increase the volume of government infrastructure work across Australia with a focus on the east coast.

This would involve pursuing joint-venture construction opportunities with Leighton Holdings.

Macmahon would continue to grow the mining business across all areas, including underground and open-cut mines.

The company would also explore overseas opportunities, with a focus on Asia and Africa.

Group revenue for the year rose 28.8 per cent to $1.24 billion.

Macmahon said the growth in revenue and profit in the 2008 full year was due to strong operational results across both the construction and mining businesses.

The construction business delivered a 56.0 per cent increase in revenue, along with improved margins.

The mining business also achieved improved results from operations in Western Australia and its mining services business.

Macmahon said it continued to win work and gain contract extensions throughout the year.

The company's order book stood at $2.14 billion at June 30, 2008, excluding the $1.1 billion Spinifex Ridge Moly Mines contract, which is subject to the client completing project financing.

Combined work for government agencies, and global miners BHP Billiton and Rio Tinto account for 75 per cent of the total order book.

© 2008 AAP
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