Leighton Holdings (ASX:LEI) released its March quarterly report on Tuesday. Revenue was down 14 per cent to $3.47bn compared to a year earlier. Earnings before Interest and Tax were up 5 per cent to $208m. The company posted a NPAT margin of 3.6 per cent, which was a 20 per cent improvement compared to 1Q2014. The company is expected to meet its guidance goals. “Our first quarter results this year reflect the improvements to-date, with strong performances at the EBIT and NPAT lines… notwithstanding a 14 per cent reduction in revenue which is in line with our expectations,” the report said. Leighton also had a balance sheet ‘gearing’ of 12.1 per cent, compared to 38.5 per cent a year earlier. The company said gearing was impacted by seasonal working capital requirements and foreign exchange movement. “With the movement in gearing in the prior comparative quarter, we continue to see improved trends as the focus on cash collection and balance sheet management continues.”
Leighton also released a statement to the shareholders at the same time as the quarterly report. Executive chairman Marcelino Fernandez Verdes told the company’s annual general meeting that a change to the company’s name would take place, following an approval from shareholders. The newly proposed name was CIMIC Group, standing for Construction, Infrastructure, Mining and Concessions. “'A change to the name CIMIC is just one outward sign of the changes we will be making to our company,' Mr. Verdes said. “Reflecting that streamlining and focus, today we will vote on a proposal to change the name of the listed company to CIMIC Group Limited.”
Shares of LEI are up 12c, or .60 per cent, at $20.27 per share around 1:04pm on Monday. Although LEI has advanced 2.45 per cent in the last 12 months, is has fallen 9.76 per cent so far this year.