CIMIC confirms guidance after profit lift

Construction giant CIMIC has reaffirmed its full year guidance after lifting first quarter profit.


The company formerly known as Leighton Holdings made a net profit of $130.3 million in the three months to March 31, up five per cent from a year ago.

CIMIC added new work of $3.1 billion during the quarter and said it is poised to take advantage of significant opportunities at home and abroad.

“We will focus on winning our fair share of projects in Australia, given our competitive position, and on harnessing our know-how for the expanding PPP market,” chief executive Marcelino Fernandez Verdes told the company’s annual general meeting.

The group is analysing around $50 billion worth of infrastructure and mining projects that will be awarded during the remainder of 2016.

CIMIC is on track to meet its full year profit guidance of between $520 million and $580 million, he said.

The company made a $520.4 million profit in 2014/15.

Recent major project wins include the second phase of the Gold Coast light rail project, a $1.3 billion contract mining extension in central Queensland and a contract to design and build the second phase of Sydney’s WestConnex road project.

The group is now looking to bid for other light and heavy rail, road and social infrastructure projects as it looks to strengthen its local presence.

CIMIC took control of mining services specialist Sedgman last month, and has launched a takeover bid for residential property developer Devine.

It is also targeting on expanding its Thiess contract mining arm in North and South America.

CIMIC shares dropped 16 cents to $35.97.