Leighton Holdings

Wednesday 28th September 2011

Leighton Holdings (ASX: LEI) has been upgraded to Buy from Hold by Citi after the broker says that its shares price already considers the risks that the company faces. Citi says LEI faces risks associated with two major Australian infrastructure projects and headwinds in the Middle East, but adds its core business is well positioned for growth.

In the year to 30 June 2011, LEI reported total revenue including joint ventures and associates increased by 4% to $19.4 billion. The revenue generating markets for the Group were infrastructure $10.7 billion; resources $7.4 billion; and property $1.3 billion. LEI’s result after tax and minority interest for the year was a loss of $408.8 million, down from a profit of $612.0 million in the year to 30 June 2010.

New work won in the year of $7.3 billion included the award of the New Royal Adelaide Hospital in South Australia and M2 motorway upgrade in Sydney.

In its outlook for the current year ending 30 June 2012 LEI reported that its balance sheet will provide the depth and flexibility necessary to tender large, complex projects, providing working capital, investing in plant and equipment, and pursuing new opportunities. Managing the Group’s capital requirements remains a core discipline underpinning future growth and strategic direction.

Contact IRG on 0800 437 8489

**A disclosure statement is available, on request and free of charge by calling 0800 437 8489.

Recommendation sourced from Dow Jones Newswires and IRESS.

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