National contractor Downer EDI has returned to full-year profit and expects growth in the year ahead, with its mining division being the best performer.
Downer posted a net profit of $112.8 million for the year to June 30, up from a loss of $27.8 million in the previous corresponding period.
The result comes after the financially troubled Waratah train project, in which Downer is involved, received financial support from the NSW government.
Downer said it expected to deliver a net profit of around $210 million in the 2012-13 financial year, due to the amount of work it currently has in hand.
That is despite an increasing level of uncertainty about the amount and timing of government and private sector investment in infrastructure in Australia and New Zealand, the company said.
"Our work in hand remains high at about $20 billion and we are improving our win rates in the right areas," chief executive Grant Fenn said in a statement.
"Importantly, the Waratah train project has passed a number of significant milestones during the year and, while still a challenging project, it now represents a substantially lower risk to the group."
The $3.6 billion taxpayer-funded rail project has been hit by cost blow-outs and delays.
Earlier this year, the NSW government agreed to bail out the troubled project, in return for 100 per cent equity in it.
So far, 11 trains are in use and, Mr Fenn said, manufacturing of further trains was progressing at three trains per month.
All of Downer's businesses posted higher revenues in the year to June 30, with its contract mining business recording the strongest growth.
Mr Fenn said Downer Mining performed "particularly well", with revenue up 68 per cent and EBIT up 45 per cent to $173 million.
"Downer Mining has done a great job minimising the growing pains normally associated with ramping up on such a scale," he said.
"There has been a lot of investment over the past two years and the mining business is delivering."
Downer Mining's major contracts include Fortescue Metals Group's Christmas Creek iron ore mine, where it reported a "substantial improvement", and Karara Mining's magnetite project, which recently commenced.
Downer's Australian Infrastructure business reported a 38 per cent lift in EBIT to $151 million, the New Zealand business doubled EBIT to $29 million while the Rail division's EBIT was $76 million.
Downer did not declare any dividends for the year to June.
