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Brickworks Limited (BKW) reported a 65.5% drop in profit for the six months to 31 January 2010. The company posted a profit of $88.2 million for the period, compared to $255.3 million a year earlier.

Brickworks expects its full-year result to be solid due to lower interest expense as a result of the conservative level of gearing and the improving performance of the Building Products division.

“This is due to the initial signs of recovery that are already evident in the housing market and the expansion of the Building Products division into new growth areas,” the company said.

“The Investments division is also forecast to maintain performance.”

Brickworks reported a normalised profit of $57 million, 12.1% higher than the previous corresponding period.

Chairman, Robert Millner, said this result highlighted increased earnings derived from the Building Products and Property divisions and lower interest payments.

The company said the Building Products division recorded an earnings before interest and tax result of $21.8 million for the half year, up 32.9% from the $16.4 million reported in the previous corresponding period.

Brickworks attributed the increase to higher volumes and higher average selling prices.

The Land and Development division produced an EBIT of $12.3 million for the half year, an increase of 1.7% from the previous corresponding period.

Brickworks’ said its investment in Washington Soul Pattinson & Company (WHSP) contributed $39.9 million for the half year, down 16.5% from $47.8 million in the previous corresponding period.

The company said the market value of its 48.25% share holding in WHSP was about $1.4 billion, up 24.1% from $1.125 billion at 31 July 2009.

Managing director, Lindsay Partridge, said the company undertook significant steps to improve the business and strengthen its financial position.

“A total of $421.9 million was raised through a successful Share Purchase Plan, the sale and leaseback of the Wollert plant and the sale of surplus properties and non-core assets,” Mr Partridge said. 

“Consequently, net debt to capital employed was reduced to 10.8%.”

Brickworks declared an increased interim dividend of 13c per share for the half-year, up from 12.5 cents per share for the previous corresponding period.  

At the close of trade yesterday, Brickworks shares were trading at $12.60.

Sovereign debt concerns came back to rattle US markets Wednesday, however this time it was Portugal, not Greece, which worried investors. The country had their credit rating downgraded to AA minus by ratings agency Fitch, citing the country’s debt load.

In the US, new home sales fell 2.2% to an annualised rate of 308,000 units, disappointing analysts who were expecting a jump to 315,000 units.

The Dow Jones fell 52.68 points, or 0.48%, to 10,836.15, the S&P 500 lost 6.45 points, or 0.55%, to 1,167.72 and the NASDAQ sank 16.48 points, or 0.68%, to 2,398.76.

Among the banks, Bank of America added 2.6% after saying it would restructure some subprime mortgages to make repayments more affordable.

Citigroup added 0.5%, though other banks weren’t so strong with Wells Fargo and Goldman Sachs down 0.7% and 02% respectively.

Among the tech stocks, Apple rose 0.4%, while Microsoft dipped 0.4%. Google rallied 1.5% – the same amount it lost yesterday.

Despite the downturn in housing figures, home builders were generally higher. Toll Brothers and Pulte Home added 0.8% and 1.7% respectively.

Health stocks Procter & Gamble and Merck both lost 1.3%.

Coffee house giant Starbucks slipped 0.5% despite the company announcing its first dividend ever, and a share buyback plan.

Cereal maker General Mills lost 1.9% despite a slew of positive earnings figures and outlook estimates.

Crude oil for May delivery slipped US$1.30 to settle at US$80.61 a barrel. The government's weekly oil inventory report showed a larger than expected build in supplies.

Exxon Mobil lost 0.7%, while Chevron slumped 1.1%.

COMEX gold for April delivery fell $14.90 an ounce to $1,088.80.

European Markets

European stocks were mixed and generally flat Wednesday as stocks maintained 17-month highs. A downgrade in Portugal’s credit rating countered gains from the manufacturers and services industry.

The UK benchmark FTSE100 added 4.25, or 0.07% to 5,677.88. The French CAC40 lost 2.74, or 0.07% to 3,949.81, while the German DAX advanced 21.73, or 0.36% to 6,039.00.

Among the UK banks, Barlcays added 0.3%, while RBS advanced 1%

HSBC lost 0.2%.

In Germany Deutsche Bank climbed 1.6% and Commerzbank rallied 2.8%.

The health stocks in Europe generally rose, with GlaxoSmithKline up 0.7%, Shire adding 2.1% and Novartis rose 0.8%.

Car maker Fiat climbed 3.9% on reports of larger than expected job cuts, while French car maker Peugeot added 1.1%.

UK homebuilder Bellway surged 5.6% after posting a small profit for the half year, indicating a stabilisation of the housing market.

Among the miners, Aussie giant BHP Billiton retreated 0.1% and peer Rio Tinto climbed 1.4%.

Anglo American was 0.9% stronger despite most base metal prices falling more than 1% on the London Metals Exchange.

Japanese Markets

Japan’s Nikkei advanced following a government report that revealed the nation’s exports increased at the quickest pace in 30 years during February. A strengthening yen and concerns regarding European debt issues limited gains.

The Nikkei 225 added 40.88, or 0.38% to 10,815.03.

Sharp, Kyocera Corp and Canon put on 3.2%, 2.7% and 1.7% respectively on the back of the export data.

Nintendo rallied 8.7% as it plans to launch a new model of its DS handheld game gear.

Automaker Toyota rose 1.5%, while Mazda shed 1.6%.

Bearing maker NSK climbed 4.8% after lifting its profit forecast citing an increase in sales.

On the downside, banks Mitsubishi UFJ Financial and Mizuho Financial slid 0.4% and 1%.

Asahi Breweries lost 2.5% on a broker downgrade.

Hong Kong Markets

The Hang Seng made ground for a second straight session Wednesday.

The Hang Seng climbed 20.84, or 0.10% to 21,008.62.

Bank of China lost 0.5% on the Hang Seng, however its local subsidiary rallied 2.6% after profit increased four-fold. ICBC added 0.4%.

HSBC retreated 0.3%.

China Cosco spiked 3.6% after Goldman Sachs upgraded the shipping stock to a ‘buy’.

Among the telco’s China Unicom lost 1.5%. China Mobile dipped just 0.1%.

Sovereign debt concerns came back to rattle US markets Wednesday, however this time it was Portugal, not Greece, which worried investors. The country had their credit rating downgraded to AA minus by ratings agency Fitch, citing the country’s debt load.

In the US, new home sales fell 2.2% to an annualised rate of 308,000 units, disappointing analysts who were expecting a jump to 315,000 units.

The Dow Jones fell 52.68 points, or 0.48%, to 10,836.15, the S&P 500 lost 6.45 points, or 0.55%, to 1,167.72 and the NASDAQ sank 16.48 points, or 0.68%, to 2,398.76.

Among the banks, Bank of America added 2.6% after saying it would restructure some subprime mortgages to make repayments more affordable.

Citigroup added 0.5%, though other banks weren’t so strong with Wells Fargo and Goldman Sachs down 0.7% and 02% respectively.

Among the tech stocks, Apple rose 0.4%, while Microsoft dipped 0.4%. Google rallied 1.5% – the same amount it lost yesterday.

Despite the downturn in housing figures, home builders were generally higher. Toll Brothers and Pulte Home added 0.8% and 1.7% respectively.

Health stocks Procter & Gamble and Merck both lost 1.3%.

Coffee house giant Starbucks slipped 0.5% despite the company announcing its first dividend ever, and a share buyback plan.

Cereal maker General Mills lost 1.9% despite a slew of positive earnings figures and outlook estimates.

Crude oil for May delivery slipped US$1.30 to settle at US$80.61 a barrel. The government's weekly oil inventory report showed a larger than expected build in supplies.

Exxon Mobil lost 0.7%, while Chevron slumped 1.1%.

COMEX gold for April delivery fell $14.90 an ounce to $1,088.80.

European Markets

European stocks were mixed and generally flat Wednesday as stocks maintained 17-month highs. A downgrade in Portugal’s credit rating countered gains from the manufacturers and services industry.

The UK benchmark FTSE100 added 4.25, or 0.07% to 5,677.88. The French CAC40 lost 2.74, or 0.07% to 3,949.81, while the German DAX advanced 21.73, or 0.36% to 6,039.00.

Among the UK banks, Barlcays added 0.3%, while RBS advanced 1%

HSBC lost 0.2%.

In Germany Deutsche Bank climbed 1.6% and Commerzbank rallied 2.8%.

The health stocks in Europe generally rose, with GlaxoSmithKline up 0.7%, Shire adding 2.1% and Novartis rose 0.8%.

Car maker Fiat climbed 3.9% on reports of larger than expected job cuts, while French car maker Peugeot added 1.1%.

UK homebuilder Bellway surged 5.6% after posting a small profit for the half year, indicating a stabilisation of the housing market.

Among the miners, Aussie giant BHP Billiton retreated 0.1% and peer Rio Tinto climbed 1.4%.

Anglo American was 0.9% stronger despite most base metal prices falling more than 1% on the London Metals Exchange.

Japanese Markets

Japan’s Nikkei advanced following a government report that revealed the nation’s exports increased at the quickest pace in 30 years during February. A strengthening yen and concerns regarding European debt issues limited gains.

The Nikkei 225 added 40.88, or 0.38% to 10,815.03.

Sharp, Kyocera Corp and Canon put on 3.2%, 2.7% and 1.7% respectively on the back of the export data.

Nintendo rallied 8.7% as it plans to launch a new model of its DS handheld game gear.

Automaker Toyota rose 1.5%, while Mazda shed 1.6%.

Bearing maker NSK climbed 4.8% after lifting its profit forecast citing an increase in sales.

On the downside, banks Mitsubishi UFJ Financial and Mizuho Financial slid 0.4% and 1%.

Asahi Breweries lost 2.5% on a broker downgrade.

Hong Kong Markets

The Hang Seng made ground for a second straight session Wednesday.

The Hang Seng climbed 20.84, or 0.10% to 21,008.62.

Bank of China lost 0.5% on the Hang Seng, however its local subsidiary rallied 2.6% after profit increased four-fold. ICBC added 0.4%.

HSBC retreated 0.3%.

China Cosco spiked 3.6% after Goldman Sachs upgraded the shipping stock to a ‘buy’.

Among the telco’s China Unicom lost 1.5%. China Mobile dipped just 0.1%.

Aussie shares came off lunchtime highs, however still finished firmly in the black Wednesday as investors continue to buy banking and mining stocks. A report that steel and iron ore prices were set to soar helped that sub sector, while healthcare stocks were also in favour a day after President Obama signed into law sweeping health care reforms in the US.

In economic news, according to the Department of Education, Employment and Workplace Relations skilled job vacancies increased 2.4% in March.

At the end of the day, the All Ords rose 15.3 to 4,903.2, while the ASX/200 gained 16.7 to 4,891.5. Around 2.4 billion shares worth about $5.4 billion had changed hands.

At lunch the big four banks were particularly strong, however throughout the afternoon both NAB and ANZ lost ground. NAB closed up 1c to $27.37, while ANZ lost 8c, or 0.3% to $25.37.

Westpac and CBA were up 1% and 0.9% to $27.76 and $57.21 respectively.

Investment bank Macquarie and the insurers all finished in positive territory however were hugging the gain line, and not influencing the broader Banks and Financials sector, which put on 0.3%.

Mining heavyweights BHP Billiton and Rio Tinto put on 0.7% and 2% to $43.36 and $77.20 respectively. The latter said yesterday that regulatory approval of its proposed iron ore joint venture with the former would likely take another several months.

Base metals prices were mixed overnight, with nickel the best performer up 1%, while the price of lead dropped 2.9%.

The Materials and Resources sector advanced 0.6%.

Australia’s third largest iron ore producer, Fortescue added 2c, or 0.4% to $4.81. The company’s CEO, Andrew Forrest, said he was prepared to sell stakes in the company's magnetite projects to foreign steel mills.

Steel stocks continued to show strength. Bluescope and Onesteel rallied 1.4% and 1.3% respectively, while mid-tier miner Western Areas climbed 22c, or 4.4% to $5.18.

Grange Resources added 4c, or 7.5% to 57c.

Chemicals and explosives company Orica slid 19c to $26.21 as the company announced the clean up bill at its Botany site would cost the company about $63 million.

Energy stocks were mainly higher as the price of crude edged towards the US$82 a barrel mark. The sector gained 0.3%.

Woodside added 22c to $47.42, while Santos and Oil Search put on 0.8% and 1% to $14.37 and $5.96.

Origin dipped 15c to $16.66.

Coal and iron ore explorer Aquila and uranium miner Paladin climbed 3.1% and 3% to be the best performing major stocks in the sector

On the other side of the line, Coal & Allied slipped $1.35 to $88.81.

Transurban slumped 10c, or 1.9% to $5.05 after the Australian government’s Future Fund said that it has withdrawn from discussions with the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to join the Canadians in their bid to acquire the Australian toll road operator.

Industrials dropped 0.9%.

Transfield lost 0.7% to $4.06 despite being awarded a US$27.7 million five-year contract with the North Carolina Department of Transportation today.

Leighton and Brambles weakened 0.2% and 1.6%, while Toll was 0.7% higher to $7.43.

Engineering firms Boart Longyear and UGL gave up 3.2% and 2.1% respectively.

Consumer Staples was led 0.2% higher by small gains from both Wesfarmers and Woolworths. They were trading at $32.07 and $28.70 respectively.

Solid gains from several sector majors saw Consumer Discretionary move 1.2% higher.

Media company Fairfax climbed 2.5% to $1.835, gamer Crown added 1.1% to $8.39 and surfwear retailer Billabong put on 2.9% to $11.02.

Among the retailers Myer and David Jones were both 2.1% stronger.

The Healthcare sector outperformed to gain 1.4%.

CSL rose 35c, or 1% to $35.60 and Sonic rallied 2.2% to $14.16. Ansell jumped 3.9% to $12.52.

AGL Energy added 8c to $15.22 despite a broker downgrade from Credit Suisse.

The Utilities sector edged 0.1% into the red.

Telstra lost 4c to $3.08 as the Telecommunications sector weakened 1.2%.

Around the region, the Nikkei 225 gained 21.2 to 10,795.3, while the NZSE50 edged 0.4 higher to 3,228.8. The Straits Times Index lost 7.5 to 2,898.2. The Hang Seng added 92.4 to 21,080.2.

Spot gold was trading at US$1,101.80 per ounce, while the Aussie was buying US$0.9166.

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Orica hit with $63m clean up bill
Orica said this morning that the clean up of mercury at the company’s Botany side would cost the company around $45 million. In addition to this the company said that, following a review of existing environmental provisions in light of cost changes, approval delays and other factors, it would increase environmental provisions relating to hexachlorobenzene waste disposal at the Botany site by $18 million.

At the end of the day, Orica shares were trading down 19c to $26.21.

Mirvac reaffirms positive message
Mirvac said the group was seeing a number of positive signs in the marketplace, and despite expressing caution, also said it was confident of its direction. Writing in the company’s half-year report this morning, managing director, Nick Collishaw, said that capital management initiatives in the last 18 months meant the group was in a strong position to capitalise on opportunities when they arise.

At the close, Mirvac shares were unchanged at $1.48.

Sedgman awarded $48m contract
Sedgman said it has secured a $48 million construction contact for the upgrade of Xstrata Coal’s ATCOM coal handling and preparation plant at Witbank near Johannesburg. The resource sector services company said the new contract follows on from the $75 million design and supply contract announced on 19 November 2009, taking the total value of work awarded to the company on the upgrade project to $123 million.

At the bell, Sedgman shares were up 6c to $1.59.

Future Fund turns back on Transurban deal
Transurban Group shares fell more than 5% in early trade after the Australian government Future Fund said that it has withdrawn from discussions with the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to join the Canadians in their bid to acquire the Australian toll road operator.

At the finish, Transurban shares were down 10c to $5.05.

Sumitomo has 5.52% of Nufarm shares under offer
Nufarm said the tender offer by Sumitomo Chemical Company Limited to acquire up to 20% of the total issued shares in Nufarm received acceptance offers of 5.52% of all Nufarm shares. The company said due to the terms of the offer Sumitomo would not acquire more than 20% of the issued shares in Nufarm.

At the end of the session, Nufarm shares were unchanged at $8.80.

Transfield wins US$28m contract
Transfield Services said it has secured a US$27.7 million five-year contract with the North Carolina Department of Transportation. The company said Transfield Services North America Transportation Infrastructure would deliver operations, maintenance, emergency response, asset management and construction services on 135 miles of interstate roadway and associated assets.

At the close, Transfield shares were down 3c to $4.06.

Australian shares moved higher Wednesday morning, however not quite matching the 1% rise in the Dow overnight. Financial and mining majors led the broader indices higher, while healthcare stocks were also in favour.

Wall Street rallied on the back of a better-than-expected report on US home sales.

At noon, the All Ords rose 31.4 to 4,919.3, while the ASX/200 gained 33.6 to 4,908.4. Around 1 billion shares worth around $2.0 billion had changed hands.

For the second consecutive day the big four banks were particularly strong. NAB, CBA and Westpac were between 1% and 1.1% higher, while ANZ had added 0.6%.

Investment bank Macquarie rallied 86c, or 1.7% to $50.69 as the Banks and Financials sector put on 0.9%.

The insurers were all within 1% above the gain line. QBE rose 19c to $21.37.

Market and mining heavyweights BHP Billiton and Rio Tinto put on 1.1% and 2% to $43.53 and $77.21 respectively. The latter said yesterday that regulatory approval of its proposed iron ore joint venture with the former would likely take another several months.

Base metals prices were mixed overnight, with nickel the best performer up 1%, while the price of lead dropped 2.9%.

The Materials and Resources sector advanced 1%.

Australia’s third largest iron ore producer, Fortescue rallied 9c, or 1.9% to $4.88. The company’s CEO, Andrew Forrest, said he was prepared to sell controlling stakes in the company's magnetite projects to foreign steel mills.

Gold miners Newcrest and Lihir were relatively flat despite a 0.4% rise in the price of the precious metal overnight.

Chemicals and explosives company Orica slid 14c to $26.26 as the company announced the clean up bill at its Botany site would cost the company about $63 million.

Energy stocks were mainly higher as the price of crude edged towards the US$82 a barrel mark. The sector gained 0.7%.

Woodside added 36c to $47.56, while Santos and Oil Search put on 1.3% and 1.4% to $14.44 and $5.98.

Coal and iron ore explorer Aquila and uranium miner Paladin climbed 3.2% and 3.6%.

On the other side of the line, Coal & Allied and Origin slipped $1.22 and 8c to $88.94 and $16.73.

Industrials dropped 0.8% to be the worst performing sector.

Transurban slumped 29c, or 5.6% to $4.86 after the Australian government’s Future Fund said that it has withdrawn from discussions with the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to join the Canadians in their bid to acquire the Australian toll road operator.

Transfield lost 1.2% to $4.04 despite being awarded a US$27.7 million five-year contract with the North Carolina Department of Transportation today.

Leighton and Brambles weakened 0.1% and 0.8%, while Toll was 1.1% higher at lunch.

Consumer Staples was led 0.1% higher by small gains from both Wesfarmers and Woolworths. They were trading at $31.99 and $28.72 respectively.

Solid gains from several sector majors saw Consumer Discretionary move 1% higher.

Media company Fairfax climbed 3.1% to $1.845, gamer Crown added 1.4% to $8.42 and surfwear retailer Billabong put on 2.8% to $11.01.

The Healthcare sector outperformed to gain 1.3% a day after President Obama signed into law a health care bill that would extend health care coverage to around 95% of Americans.

CSL rose 49c, or 1.45 to $35.74 and Sonic rallied 2.1% to $14.14. Ansell jumped 3.6% to $12.48.

A broker downgrade from Credit Suisse did not send AGL Energy shareholders packing as the stock added 8c to $15.22.

The Utilities sector edged 0.1% into the black.

Telstra lost 3c to $3.09 as the Telecommunications sector weakened 0.6%.

Around the region, the Nikkei 225 gained 100.6 to 10,874.8, while the NZSE50 edged 0.4 higher to 3,228.8. The Straits Times Index rose 12.1 to 2,917.7.

Spot gold was trading at US$1,102.45 per ounce, while the Aussie was buying US$0.9181.

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Orica hit with $63m clean up bill

Orica said this morning that the clean up of mercury at the company’s Botany side would cost the company around $45 million. In addition to this the company said that, following a review of existing environmental provisions in light of cost changes, approval delays and other factors, it would increase environmental provisions relating to hexachlorobenzene waste disposal at the Botany site by $18 million.

Half way through the day, Orica shares were trading down 13c to $26.27.

Mirvac reaffirms positive message
Mirvac said the group was seeing a number of positive signs in the marketplace, and despite expressing caution, also said it was confident of its direction. Writing in the company’s half-year report this morning, managing director, Nick Collishaw, said that capital management initiatives in the last 18 months meant the group was in a strong position to capitalise on opportunities when they arise.

At lunch, Mirvac shares were trading up 2c to $1.50.

Sedgman awarded $48m contract
Sedgman said it has secured a $48 million construction contact for the upgrade of Xstrata Coal’s ATCOM coal handling and preparation plant at Witbank near Johannesburg. The resource sector services company said the new contract follows on from the $75 million design and supply contract announced on 19 November 2009, taking the total value of work awarded to the company on the upgrade project to $123 million.

Half way through the day, Sedgman shares were up 3c to $1.56.

Future Fund turns back on Transurban deal
Transurban Group shares fell more than 5% in early trade after the Australian government Future Fund said that it has withdrawn from discussions with the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to join the Canadians in their bid to acquire the Australian toll road operator.

At midday, Transurban shares were trading down 29c to $4.86.

Sumitomo has 5.52% of Nufarm shares under offer
Nufarm said the tender offer by Sumitomo Chemical Company Limited to acquire up to 20% of the total issued shares in Nufarm received acceptance offers of 5.52% of all Nufarm shares. The company said due to the terms of the offer Sumitomo would not acquire more than 20% of the issued shares in Nufarm.

By noon, Nufarm shares were down 1c to $8.79.

Transfield wins US$28m contract
Transfield Services said it has secured a US$27.7 million five-year contract with the North Carolina Department of Transportation. The company said Transfield Services North America Transportation Infrastructure would deliver operations, maintenance, emergency response, asset management and construction services on 135 miles of interstate roadway and associated assets.

At lunchtime, Transfield shares were down 3c to $4.06.

NZ current account swings to deficit
New Zealand reported today seasonally adjusted current account balance deficit of $3.1 billion for the December quarter, a swing from a $39 million surplus in the prior quarter – the first such surplus posted in more than 20 years. The swing from a surplus to a deficit was driven by an increase in income earned by foreign investors from their New Zealand investments, Statistics New Zealand said.

Orica Limited (ORI) said this morning that the clean up of mercury at the company’s Botany side would cost the company around $45 million.

In addition to this the company said that, following a review of existing environmental provisions in light of cost changes, approval delays and other factors, it would increase environmental provisions relating to hexachlorobenzene waste disposal at the Botany site by $18 million.

Both of these pre-tax amounts would be noted against the company’s half year financial accounts for the period to 31 March 2010, Orica said.

Furthermore Orica said that the Federal Court decision in relation to the Pharmaceuticals tax case on 10 March 2010, Orica has said it would recognize $192 million after tax as an individually material item in the financial statements for the half-year ending 31 March 2010.

Orica this morning confirmed it would appeal the Federal Court's decision.

At 1136 AEDT, Orica shares were trading down 16c to $26.24.

Sedgman Limited (SDM) said it has secured a $48 million construction contact for the upgrade of Xstrata Coal’s ATCOM coal handling and preparation plant at Witbank near Johannesburg. The resource sector services company said the new contract follows on from the $75 million design and supply contract announced on 19 November 2009, taking the total value of work awarded to the company on the upgrade project to $123 million.

Sedgman said the upgrade is part of Xstrata Coal’s $US407 million ATCOM East Project and is being delivered by Sedgman Limited and Sedgman South Africa (Pty) Ltd under a staged, tripartite contract with Xstrata South Africa (Pty) Ltd.

Sedgman’s managing director, Mark Read, said Xstrata Coal was targeting project completion by the end of calendar 2010 and that the contract was an opportunity to drive the future growth of the business a new market.

Mr Read also said the company had also been engaged to undertake a feasibility study for a new coal mine project in Mozambique’s Moatize Basin.

“Sedgman has already been working with Brazilian mining house Vale on its multi-billion dollar Moatize coal project in Mozambique and Riversdale Mining’s nearby Benga coal project,” Mr Read said.

“This new study is for one of several regional projects in the Company’s project pipeline which would largely be delivered through Sedgman South Africa’s expanding operations in Johannesburg where almost 30 staff are now based.”

Sedgman Coal’s chief operating officer, Steve van Barneveld, who has been stationed in Johannesburg to coordinate development of the company’s operations in South Africa, said Sedgman South Africa continues to be developed as the central hub for all operations on the continent and is expected to mature into a self-sufficient business.

Meanwhile, Mr Read said wining the new ATCOM construction contract supported Sedgman’s positive outlook, particularly for FY2011 and beyond as global business conditions improved.

“We expect to continue to grow our order book and capitalise on the increasing number of project opportunities both in Australia and abroad,” Mr Read said.

The company said it is currently focused on a $5.5 billion global pipeline of targeted project opportunities in coal and metals.

As at 1126 AEDT, Sedgman shares were up 1c to $1.54.