CIM CIMIC Group Limited

   By Rhiannon Hoyle 
 

SYDNEY--Construction and engineering contractor Cimic Group Ltd. (CIM.AU) said its annual profit rose by 11% and it forecast a further rise in earnings for 2019 underpinned by a string of new contracts.

Cimic reported a net profit of 781 million Australian dollars (US$567 million) for the year through December, up from A$702 million a year earlier. That narrowly surpassed an earlier projection of A$720 million to A$780 million.

It forecast a profit of A$790 million to A$840 million for this year.

Directors declared a final dividend of A$0.86 a share, up 15% on year. Cimic is majority owned by Germany's Hochtief AG (HOT.XE), which is controlled by Spain's Actividades de Construccion y Servicios S.A. (ASC.MC).

The company said revenue was up 9%, cash flow from operating activities was up 22% and that it cut gross debt to the lowest level in more than a decade.

Cimic, which has in recent years expanded by acquiring companies including engineering services company UGL Ltd. and mineral processing company Sedgman, said operating work in hand increased by A$1.8 billion, or 6%, and that it had been awarded A$17.9 billion of new work during the year.

"Our pipeline of work has further increased and we have a positive outlook for 2019 and beyond," reflecting improved conditions in the mining sector and rising work in the Australian infrastructure market, said Executive Chairman Marcelino Fernandez Verdes.

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

(END) Dow Jones Newswires

February 05, 2019 01:13 ET (06:13 GMT)

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