Engineering and construction business Leighton Holdings Limited (ASX: LEI) today announced a 33% rise in net profit for the year ended December 31, 2014. Revenues from continuing operations climbed 4%, with the profit boost largely the result of its sale of the John Holland construction business.
Dividends
Shareholders were rewarded with a fully franked final dividend of 53 cents per share and special 15 cent dividend to recognise the value created by the divestments of John Holland and the Services investment partnership.
Business in transition
Leighton has been weighed down by boardroom battles and misconduct allegations in recent times and now operates under new majority owner the Spanish builder Hochtief.
The company's chief executive Marcelino Fernandez Verdes said: "In 2014 we commenced the transformation of our company. We have made significant progress on our restructuring initiatives, produced a sustainable reduction in our overheads and, through divestments and operating cash inflows, deleveraged and de-risked the balance sheet."
Alongside other engineering business like Bradken Limited (ASX: BKN) and Worleyparsons Limited (ASX: WOR), Leighton has suffered from the mining slowdown, although it does have greater exposure to general infrastructure development in Australia and globally.
Outlook
In 2015 the group expects to report a net profit in the range of $450 million to $520 million, the outlook supported by the ongoing cost-cutting program and reduced finance costs from the deleveraging of the balance sheet.
The stock is up 2.7% to $22.03 in morning trade.
