Engineering contractor Macmahon Holdings has reported a 65% fall in annual net profit, but says more positive signs are emerging in the market. It reported net profit of USD 17.2 million for the year to June 30th 2009, down by 64.8% YoY. Revenue was 19.4% YoY higher at USD 1.486 billion.

Macmahon said in a statement that ''While the operating environment remains uncertain, the company believes more positive signs are beginning to emerge. We are confident of achieving 2010 revenue of USD 1.3 billion with upside based on the timing of new work. Together with a conservative balance sheet position and internal improvements and efficiency gains throughout the 2009 year, we are well placed to make a strong profit recovery in 2010.''

Macmahon said that, with higher government spending on infrastructure, its construction business would benefit in the short to medium term, while its mining business would remain steady at June 2009 levels. It added that "Consequently, we will generate a greater proportion of its revenue from its construction division.''

Perth based Macmahon said it would strengthen its presence in the east coast market, particularly in government infrastructure work, focus on the iron ore and coal resource infrastructure sectors, target larger construction opportunities, improve efficiencies, leverage construction and underground expertise on underground civil projects, and pursue overseas opportunities.

(Sourced from AAP)