Leighton Holdings Ltd (ASX:LEI) has announced that its wholly owned subsidiary Thiess Pty Ltd has scored a $291 million deal to build a rail link in South Australia.
The Thiess McConnel Dowell joint venture has been awarded a contract to connect Seaford to Adelaide through a rail track to serve the region's growing population.
Southern Adelaide is expected to add an extra 9,000 residences by 2025. The major construction works will start now with the new line scheduled for passenger operation in 2013.
The news from Leighton follows a warning from development and contracting company issued yesterday, downgrading its full-year operating profit after tax guidance for the 2011 income year to $510 million, ahead of the release of its annual results this Thursday.
In the 2010 financial year Leighton Holdings posted a profit of $615.13 million.
LEI Price at posting:
$33.00 Sentiment: None Disclosure: Held
