Downer EDI net up 24pc

Downer is building a solid order book with enhanced outlook.

Downer EDI net up 24pc to $56.4m; final 1.9c (1.6c)
11:05, Monday, 26 August 2002

Sydney - Monday - August 26: (RWE) - Downer EDI Ltd lifted net
profit 24 per cent to $56.43 million in the 12 months to June 30 from
$45.52 million for the previous year.
Revenues were up 49.6 per cent to $2.43 billion from $1.62
billion.
Basic earnings per share were 5.8c, down from 6.1c.
Final dividend has been increased from 1.6c to 1.9c, unfranked,
payable on November 29 to shareholders registered September 2.
This brings dividend for the year to 2.4c, up from 2.1c.
At year-end, the forward order book was at $4.5 billion, up 22
per cent from a year ago, reflecting increases in the core operating
areas of mining, rail, telecommunications and power.
Managing director Mr Stephen Gillies said the results were in
line with expectations relayed to shareholders at the annual meeting.
"Overall, our core businesses performed well with substantial
increases in turnover from engineering division (69pc increase to
$741.2m), mining division (71pc increase to $912.9m) and rail division
(145pc increase to $428.4m).
"Adverse impacts on the result for the year arose largely as a
result of lower-than-expected turnover for infrastructure division in
New Zealand following poor weather conditions in the first half,
combined with one-off occurrences including stage one of Sydney's new
Millenium train contract, provision for redundancies at the Walkers'
plant in Maryborough and below-expected performance of Engineering
Division's capital works group," he said.
Mr Gillies said the outlook for 2003 was positive.
"We expect another strong year with work in hand 20 per cent
ahead of the same period last year and a number of significant
opportunities to increase the order book.
"We are well positioned to capitalise on global trends towards
outsourcing and expect steady growth to come from the company's ability
to provide clients with turnkey service delivery in its target markets
of mining, power, rail, road and telecommunications with focus on the
Australian, New Zealand and Asian markets.
"The work on hand and order book is well ahead of last year and
is expected to continue to increase as the company builds its service
model within its core business streams," he said.
Downer EDI rose 2c to 62c.