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CONSTRUCTION and engineering giant CIMIC Group (ASX: CIM), has reaffirmed its full year profit guidance after lifting third-quarter profit by 20 per cent.
The company reported a net profit of $178.2 million for the September quarter, bringing the last nine months of profit to $501 million.
Revenue for the three months ended September 30 also rose 21.9 per cent to $3.3 billion.
The group said it secured orders worth $4.5 billion in the three-month period and at the end of September held work-in-hand worth $35.7 billion.
Executive chairman Marcelino Fernandez Verdes says the group is well placed to meet profit guidance following strong Q3 results.
"We remain positioned to meet out 2017 guidance supported by the diverse nature of our operations and markets, and our proven experience in growing sectors," says Verdes.
"Our positive outlook has its foundations in our unchanging focus on maintaining a strong balance sheet, generating cash, and being disciplined in tendering."
CIMIC also announced the internal promotion of Michael Wright to CEO and MD. Current CIMIC Group CEO Adolfo Valderas has accepted a role with ACS Group but will remain as a CIMIC group director.
The group previously placed its profit guidance between $640 and $700 million which is an increase of 10 to 21 per cent from FY16.
It has also forecast a positive outlook about the rest of 2017, hoping to secure some further valuable projects.
"Relevant to CIMIC, there is nearly $23 billion of tenders to be bid and awarded in the remainder of 2017, and nearly $385 billion of projects are coming to the market in 2018 and beyond," says Valderas.
During the period, CIMIC refinanced and expanded its core working capital cash facility to $2.6 billion, which Valderas says gives the group added flexibility.
"The financial flexibility provided by the new facility supports our existing operations, as well as our pursuit of business and capital allocation opportunities," says Valderas.
During the quarter, CIMIC was selected to deliver a number of projects, all up worth $4.5 billion, including services for the Melbourne train network and a number of road upgrades in Queensland and New South Wales.
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