Downer EDI $94m Profit Half Year

Engineering contracting company, Downer EDI Limited (ASX:DOW) have released its half year results to December 31 to the Australian stockmarket.

• Downer EDI Net Profit of $94 million for the first half FY2012-13, up 10.8 percent on the previous corresponding period.
• Downer EDI forecast for full year to deliver $210 million net profit and underlying earnings of $370 million.
• Downer chief executive Grant Fenn said, "The business has performed very well over the past six months. Each of our three divisions achieved substantial revenue growth."
• Reputation for Downer EDI dived after cost blow-outs and delays relating to its Waratah rail contract ("Waratah Trains", a multi-billion dollar deal to deliver 78 new trains into Sydney’s metropolitan rail network. The rail project is expected to be finished at a $430 million loss. The company has delivered 28 trains which are in service and plans to deliver the 78th train mid-2014.
• Downer subsidiary Downer EDI Engineering has been awarded $94 million engineering contract from NBN Co to provide additional construction capacity for the rollout of the national broadband network (NBN) in northern NSW.
• Downer EDI declared a 70% franked interim dividend of 10 cents, after two years of not distributing profits.