subject: Leighton report massive loss [print this page] Leighton report massive loss Leighton report massive loss
Leighton Holdings has downgraded its previous lead ore crusher guidance from a profit of $480 million after tax to a loss of $427 million.
The group says this revision is due to write backs of profits from the Airport Link project in Queensland and the Victorian Desalination project, as well as an impairment of Leighton's investment in the Habtoor Leighton Group (HLG).
Leighton CEO David Stewart labelled this result as extremely disappointing, but stated that "we are acting decisively to deal with write-backs on these two problem projects and with the investment in the Middle East.
"While it is frustrating to have to deal with the financial consequences, it does now leave Leighton well positioned to return to more normalised growth and earnings in 2011/12 and beyond," Stewart said.
It stated that poor weather, designing, engineering, planning and access difficulties were behind delays on the Airport Link project.
"Ground conditions in gypsum mining crusher some areas have proved more difficult and variable than anticipated.
"Acceleration measures and prolongation costs required to overcome project delays resulted in major increases to the forecast final cost," he said.
At the Desalination project in Wonthaggi, Victoria, wet and windy weather has continued and is expected to impact the delivery of first water.
The University of Queensland has awarded a funding to an initiative to deal with water technology issues in mining.
Professor Jurg Keller, who heads UQ's Advanced Water Management Centre has been awarded a senior research fellowship for the project.
According to Keller, the project will look at how to integrate biological processes in the mining and minerals treatment processes.
"The use of bio-processes are currently limited, and some are not well developed," he said.
The approaches to recover key resources such as metals or sulfur compounds are largely unknown, apart from a few industry exceptions, Keller explained.
This fellow ship will allow for the development of these technologies.
"Poor productivity and inclement weather have impacted the construction on the site, in particular the reverse osmosis plant."
In the Middle East, Leighton described the conditions as volatile, which has slowed the winning of new projects.
However "moving forward we well be changing quartz crusher the way we tender and deliver major projects," Stewart said.
According to the company work at hand stands at $46 billion, $4.2 billion of which has been awarded since December 2010.
