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http://www.bloomberg.com/apps/news?pid=20601081&sid=asHGnt.2Vvf4&refer=australia
Lend Lease Profit Jumps 49% on Development Contracts (Update4)
By Simeon Bennett
Feb. 28 (Bloomberg) — Lend Lease Corp., builder of London’s 2012 Olympic Village, said first-half profit surged 49 percent on income from the construction of homes for the U.S. military and urban developments in Australia and Singapore.
Net income rose to A$259.6 million ($244 million), or 64.7 cents a share, in the six months ended Dec. 31, from A$174.7 million, or 43.7 cents, a year earlier, the Sydney-based company said today. Sales grew 9.7 percent to A$7.6 billion.
Chief Executive Officer Greg Clarke is committed to more than A$60 billion of construction projects spanning six continents, including deals with the U.S. Air Force and London’s Elephant & Castle district. Lend Lease today forecast full-year earnings growth will be below its 10 percent annual target. It expects to exceed that rate over a five-year growth plan.
“It has got a lot of long timeframe projects which will still be there when the economic environment improves,” said Craig Young, who manages the equivalent of $5.1 billion at Tyndall Australia Investment Management in Sydney, including Lend Lease shares. “It has got diversity such that no single region is going to damage it enormously.”
Lend Lease shares fell 20 cents, or 1.4 percent, to A$14.50 on the Australian Stock Exchange, reversing a 4.9 percent rise.
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