|
|
 |
20 December 2000
Lend Lease Corporation December Half Year and Full Year Results
At the Annual General Meeting on 2 November 2000 we indicated that we might need to bring to account any shortfall between the market value and the book value of the investment in coolsavings.com inc., which is listed on NASDAQ.
The current price for coolsavings.com is fluctuating around US$1.00, which compares to Lend Lease’s book value of US$2.59 per share. Based on this current market price, Lend Lease would need to make a provision in the order of A$21 million after tax in the accounts for the half year to 31 December 2000.
In our operating businesses, Lend Lease Development’s earnings are in line and Bovis Lend Lease is a little ahead of our expectations for the full year. However, Real Estate Investments looks like being slightly lower than our expectations for the full year. This is due to lower transaction volumes and delayed capital raisings in the first half, largely because of the impact of interest rate and stock market volatility on investor sentiment and decision-making.
Based on current management forecasts and in the absence of any material deterioration in present market conditions, we expect an after tax operating profit for the 2000/01 year in the range of A$210-230 million on the assumption that we make no further significant provisions, asset sales, acquisitions or capital returns to shareholders.The result for the second half will be higher than that for the first half. The half year results will be released on 15 February 2001.
stock exchange
|