It is reported that Australian construction company Leighton Holdings expects to book a first half net profit of about USD 250 million and reiterated guidance for a full year figure of USD 600 million to USD 650 million.

Leighton said the guidance excludes an expected USD 163 million net gain from the sale of the HWE Iron Ore entities in Western Australia. It will, however include a further deterioration in the value of the Victorian Desalination Plant for which Leighton expects to incur an impairment charge of USD 192 million.

Leighton said the impairment came from a review of the company's assets, which also identified gains and opportunities across the portfolio.

Mr Hamish Tyrwhitt Chief executive said a forecast review had shown that the financial position of the Victorian desalination project had deteriorated, causing an additional charge of USD 192 million.

He said that "But the review also identified gains and opportunities across our portfolio of more than 400 projects including contract mining, offshore oil and gas, and across the civil, building and infrastructure construction markets."

Mr Tyrwhitt said the HWE Iron Ore sale would help offset the desalination plant charge. He said that "Looking forward, we remain in a solid position with work in hand of around USD 44 billion as at September 30 2011 and our core markets continuing to provide substantial opportunities."

(Sourced from www.theaustralian.com.au)