By Rhiannon Hoyle

SYDNEY--Cimic Group Ltd. (CIM.AU) on Thursday pared investor payouts as it reported a 12% decline in first-half profit.

Cimic, Australia's biggest construction company, reported net profit of 257.2 million Australian dollars (US$189.9 million), down from A$291.3 million the year earlier. The decline followed the sale of some businesses.

The company trimmed its interim dividend to 46 Australian cents a share, from 57 cents the same time a year ago.

Cimic said asset sales and strong operating cash flow had enabled it to pay down A$1 billion in debt, reducing gearing to 5.3% at June-end, from 12.1% three months earlier.

It said it had a pipeline of work worth A$28.5 billion at June 30.

Cimic is majority-owned by Germany's Hochtief AG (HOT.XE), which is controlled by Spain's Actividades de Construcción y Servicios S.A. (ASC.MC)

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

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