Leighton Shares Rise After Profit Guidance Upgrade

Leighton Holdings (LEI) shares jumped as high as 4 per cent or 82 cents to $21.35 in trading this morning after the Australian contractor upgrades its profit guidance for the first half. This is a result from the improved earnings that its Australian and Asian operations incurred.

As the company recovers after a net loss, Leighton now says that it is expecting an underlying profit after tax for the six months to December 31 to be around $270 million, higher than its previous guidance report of $250 million. The net profit for the first half is expected to be $340 million.

‘‘The performance of our major projects - Airport Link and the Victorian desalination project - has stabilised and we are making good progress in bringing them to completion,’’ said Leighton Chief Executive Hamish Tyrwhitt.

“The company also confirms its previous guidance for the 12 month period to 30 June 2012 at which time we expect to deliver an underlying profit after tax of between $600 to $650 million, excluding the aforementioned capital gain and impairments,” Tyrwhitt added.

The finalised results for the six months to December will be reported on February 13.