Friday, May 15, 2009

Leigton Cuts profit forcast

AUSTRALIA'S biggest construction company, Leighton Holdings (ASX:LEI), has cut its profit forecast by 10 per cent after slashing the value of toll-road and infrastructure investments. Leighton shares fell more sharply than they had in more than a month, down 8.5 per cent to $22.26, after the group announced that after-tax profit was down 41 per cent for the first nine months of the financial year.The company said full-year profit would be about $430 million, compared with its February forecast of $480 million. Last year's profit was $607.9 million.

Keep in mind here that this is a construction company and they are going to be benefitted big by the budget. they are also looking at investing overseas. Further evidence this was "fear" forcing the sells is that analysts believe that "Leighton are a very well-managed company … given the fact that they've put on about $10 since the start of May, this isn't too bad. It wouldn't surprise me if we see this stock bounce back over the next couple of weeks."Opis Capital analyst Dean Fergie said Leighton was in a comfortable debt position and it was partly the "nature of the macro-economic environment" that these asset prices were slipping.
Worthwhile looking into as an investment.

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