Australia's Leighton H1 profit hit by writedowns

Published: 11 Feb 2009 18:08:16 PST

MELBOURNE, Feb 12 - Leighton Holdings Ltd <LEI.AX>, Australia's top engineering contractor, reported a 56 percent fall in first-half profit on Thursday due to writedowns on investments.

Leighton's net profit fell to A$111.15 million ($72.5 million) from A$250.25 million in the previous corresponding period, and it said it saw full-year net profit at about A$480 million.

The company, majority-owned by German construction group Hochtief <HOTG.DE>, had halved its full-year profit growth forecast in January, warning that its property development arm had been hurt by a broad downturn in Australian housing markets.

It said the fall in half-year profit was due to A$239 million in pre-tax writedowns on its investments, including in mining services group Macmahon Holdings <MAH.AX> and toll road operators Connect East <CEU.AX> and BrisConnections <BCSCA.AX>.