Multiplex adjusts profit forecasts

Australian construction company Multiplex today revised its forecast for aggregated group profit for 2005/06 to A$220 to A$235 million ($243-259.9 million).

Multiplex said its 2004/05 profit result was expected to be A$20 million lower than previously forecast, with a corresponding A$20 million increase in the forecast for the 2006 financial year.

Multiplex said two development sale transactions were contracted by June 30, 2005, but there remained uncertainty in relation to the satisfaction of certain conditions and therefore the quantum of profit that can be recognised in 2004/05.

"Uncertainly in relation to the timing of the recognition of the profit for these transactions may result in profit that would otherwise have been recognised in the FY05 financial year being deferred until FY2006, assuming both transactions complete in accordance with their terms," it said.

On the basis that neither transaction was recognised in 2004/05, Multiplex said its FY05 profit would be A$20 million lower than previously forecast - taking it to A$150 million - and the FY06 profit would be A$20 million higher, at A$220 million to A$235 million.

In May Multiplex cut its profit forecast for the 2004/05 financial year because of cost blow-outs and a three-month delay to the completion of its A$1.2 billion Wembley Stadium project in London.

Multiplex forecast a net profit of A$170 million for 2004/05 compared to its previous guidance of A$235 million - excluding the impact of stapling eliminations, which are adjustments for transactions between the company and its property trust.

For 2006, the group's May estimate was for a net profit of A$200 million to A$215 million, also excluding stapling eliminations and after applying international financial reporting standards.

Multiplex said its estimated distribution for the six months to June 30, 2005, remained unchanged, equating to 14 cents per security.

Multiplex shares were four cents higher at A$2.95 at 1124 AEST.

- AAP