METS

Downer maintains momentum

CONTRACTOR Downer EDI has recorded $A94 million in profits for the six months to December, an 11%...

Justin Niessner

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Total revenue rose 20% to $4.7 billion, including $300 million of contributions from joint ventures.

Earnings before interest and tax rose 5.6% versus the first half of fiscal 2012 to $169 million.

Downer chief executive Grant Fenn said the results reflected substantial revenue growth in each of the company’s three divisions.

Downer Mining revenue lifted 17% over the period to $1.3 billion on the back of ramped up work at Western Australia’s Karara iron ore mine and Queensland’s Meandu coal mine

Downer Infrastructure revenue rose 24% compared to last year, to $2.6 billion, on strong performance across road infrastructure services and resource-based projects in Australia’s eastern states. Infrastructure EBIT was 51% higher at $86 million.

Downer’s rail division marked a 27% increase in revenue over the half year to $700 million, driven largely by the Waratah passenger train project. Rail division EBIT, however, was down $34 million from the previous corresponding period due to weaker locomotive sales to BHP Billion Iron Ore and Fortescue Metals Group.

In financial 2013, Downer expects to deliver underlying EBIT of $370 million and a net profit of $210 million.

Downer shares were trading 14% higher today, at $5.56.

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