SYDNEY, Aug 20 (Reuters) - Shares in Australian mining contractor MacMahon Holdings Ltd jumped 18 percent on Wednesday after the company swung to a full year profit despite shrinking sales revenue.
MacMahon reported a net profit of A$30.4 million, compared with a net loss of A$29.5 million a year ago. Last year’s figure included the impact of the sale of its construction business to majority holder Leighton Holdings Ltd.
MacMahon shares rose as much as 18 percent and were up 13.6 percent at A$0.125 by 0009 GMT.
Including sales of discontinued operations, net profit was down from A$43.6 million a year ago. The result compared with an average analyst expectation of A$34.1 million analysts surveyed by Thomson Reuters I/B/E/S.
MacMahon’s sales fell 12.8 percent to A41.02 billion. It has faced a slowdown in mining activity as Australia’s mining investment boom tailed off.
Reporting by Byron Kaye