Construction company Lend Lease (LLC) delivered a 49% increase in half year profit on Thursday.
However, due to tougher market conditions, management expect to come slightly under targeted earnings growth for the full year.
Lend Lease said statutory profit after tax was $259.6 million compared to $174.7 million the previous corresponding period.
The net operating profit was $262.8 million, a 61% increase from $163.5 million.
Managing director Greg Clarke said Lend Lease, like most other companies, faces increasing headwinds from the slowing US economy, tightened credit markets and softer property markets in the UK; however the group is well placed to continue to deliver ongoing earnings growth.
“Our balance sheet strength gives us good flexibility and access to capital to fund our development pipeline, while the diversity and sector focus of our operating businesses mean we are well placed to deal with market volatility,” Clarke said.
“For full year 2008, even without a major asset sale, we are expecting to come in slightly under our target annual average EPS growth of 10% p.a. over a five-year period.”
In the six months to 31 December 2007, the group’s operating profit gained 60% to 65.5 cents.
Lend Lease declared an interim dividend of 43 cents per share, up from 35 cents, although franking decreased from 50% to 40%.
In March Lend Lease won preferred bidder status to build the $7.9 billion Olympic Village in London for the 2012 Olympic Games
The two phase project will have a potential value of about $13.7 billion.
Shares in LLC closed 28 cents down to $14.42.
