Cimic Sticks With Profit Guidance, Appoints New CEO

By Robb M. Stewart Features Dow Jones Newswires

MELBOURNE, Australia--Construction and mining-services contractor Cimic Group Ltd. (CIM.AU) continues to expect an up to 21% jump in annual profit following strong growth in earnings and revenue over the first nine months of the year.

Continue Reading Below

Confirmation of the company's guidance was came as Cimic said its chief executive was leaving to accept a role at Cimic's ultimate parent company and would be succeeded by Deputy Chief Executive Michael Wright.

Net profit rose 21% to 501 million Australian dollars (US$385.1 million) for the first nine months of 2017 on the back of a 26% increase in revenue to A$9.6 billion, the Sydney-based company said Wednesday.

Cimic remains positioned to meet its 2017 guidance, supported by its diverse operations and markets, Chairman Marcelino Fernandez Verdes said.

The company in February forecast a net profit of between A$640 million and A$700 million for the year, after last year notching a profit at the top end of its guidance at A$580.3 million.

Cimic said cash flows from operations rose 46% on-year to A$922 million over the nine months, and it had work in hand at the end of September worth A$35.7 billion.

Continue Reading Below

Cimic provides construction, mining, mineral processing, engineering and maintenance services to the infrastructure, resources and property markets. It is almost 73% owned by German construction company Hochtief AG (HOT.XE), which is in turn controlled by Spain's Actividades de Construccion y Servicios AS (ACS.MC).

The company said Mr. Wright had been promoted to succeed CEO Adolfo Valderas when he moves to ACS, and will step into the new job Dec. 1. It also appointed Ignacio Segura, currently CEO of Spanish construction firm Dragados SA, as deputy CEO and chief operating officer.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 31, 2017 18:18 ET (22:18 GMT)