Bullish Sign? - Bounced off 200 EMA, page-2457

So, continuing to look at some of these big Eastern states infrastructure projects through the eyes of Lendlease :
https://www.theaustralian.com.au/bu...s/news-story/ae523a686ddf038ad9c4e18cdf7797db

Lendlease apologises for misfiring engineering business

Ben+Wilmot. COMMERCIAL PROPERTY REPORTER
12.19 PM NOVEMBER 16, 2018
... “The Australian can reveal that boutique house Gresham, which has close ties with the company, has been tapped to lead the review.

“This will include consideration of structural alternatives for the engineering business, such as retaining the business, demerger or divestment. All options will be considered,” Mr Crawford said.

The chairman did not provide further detail on the review but analysts have estimated that the unit could be worth about $1 billion, once complex engineering problems are resolved.....”
...

“Mr McCann said that about 90 per cent of the $350m provision related to three projects.

He again highlighted a deterioration on Sydney’s NorthConnex project and two other unidentified projects, but said he was confident the provision reflected the full estimated cost of finishing them.

NorthConnex is about 65 per cent complete, with the tunnel boring phase now complete and delivered at a cost estimated after a $200m provision was taken earlier this year.

Mr McCann confirmed that productivity rates and costs on recently-started phases of work on NorthConnex had not achieved its estimates, forcing it to re-forecast these costs as well as those from an acceleration of the mechanical and electrical works, the final phase of the NorthConnex project.

The second project, which is almost finished, experienced unforeseen access issues resulting in Lendlease not being able to work the number of hours per month required to finish it, and it was then hit by bad weather.

The last project is three-quarters done and Lendlease found a defect in the design undertaken by external design consultants.

The company said it expected to complete all these projects by 2020 and was taking a more conservative approach to new jobs.

“We have become more selective and rigorous in our bid strategy and place greater focus on the set-up phase of new projects,” Mr McCann said.

Flagging that issues may be more widespread in a sector beset by razor-thin margins, Mr MCann said Lendlease was “working closely” with state government agencies and industry bodies on a “more balanced allocation of risk on major projects within the Australian engineering sector”.