Cimic Annual Profit Up 21%, Tips Further Rise in 2018

   By Rhiannon Hoyle 
 

SYDNEY--Construction and engineering contractor Cimic Group Ltd. (CIM.AU) said annual profit rose by 21% as revenue increased from all its core businesses, while forecasting a further rise in earnings in the year ahead.

Cimic reported a net profit of 702.1 million Australian dollars (US$554.9 million) for the year through December, up from A$580.3 million a year earlier. It forecast earnings of A$720 million to A$780 million in 2018.

Directors declared a final dividend of A$0.75 per security, up 21% on year. Cimic is majority owned by Germany's Hochtief AG (HOT.XE), which is controlled by Spain's Actividades de Construccion y Servicios S.A. (ASC.MC).

The company, which has in recent years expanded by acquiring companies including engineering services company UGL Ltd. and mineral processing company Sedgman, said its work in hand rose to A$36.0 billion at the end of December, up A$2.0 billion on 12 months earlier.

"There is an extensive pipeline of new work opportunities ahead for Cimic Group, providing us with a positive outlook," said Executive Chairman Marcelino Fernández Verdes. "In 2018, we will maintain our focus on generating sustainable returns for shareholders as we pursue new project opportunities, including public private partnerships."

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

February 06, 2018 17:27 ET (22:27 GMT)

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