Fulton Hogan posted a 9.7% increase in net profit to $151.6 million as it continues to enter different parts of the infrastructure market in Australia, and faces a softening market in Christchurch.
It says the market conditions in Australia are ‘trying’ particularly the mining states of Queensland and Western Australia according to Stuff.
Fulton Hogan has diversified into different areas in Australia related to its core business of civil engineering and road construction.
It has won national broadband network contracts in South Australia and Western Australia to deliver high-speed broadband.
Fulton Hogan managing director Nick Miller told Stuff the company is one of five that makes up the Stronger Christchurch Infrastructure Rebuild Team Alliance (SCIRT) which is rebuilding roads and underground infrastructure.
The deadline for earthquake-related work is December 2016, but Miller says there would probably be at least another five years of repair work needed to get the roads of Christchurch back to pre-earthquake standards.
He did not expect any significant job losses as a result of SCIRT finishing.
“We see growth opportunities in Auckland and Christchurch through to the end of 2016, and then we expect to see some softening in Christchurch,” says Miller.
The profit for the year to June 30 was up despite tighter infrastructure budgets that led to a 10.5% fall in revenues to $2.9 billion.
