The mining and engineering contracting company said its latest net profit compared with a $29.1 million net loss for the previous corresponding period. Pre-tax profit was $6.9 million for the six months to December 30, 2003, compared with a $30.8 million pre-tax loss for the same period in 2002.

The higher net profit for the latest period came predominantly as a result of tax credits, HWE said.

Chief executive and managing director Bruce James said the improved result reflected stabilisation of the business following a period of extensive reorganisation last year.

"Given our strong growth in work on hand, we now have a sound platform on which to grow the business," he said.

"Margin improvements will be our focus as we seek to lift shareholder returns on a sustainable basis. If we fulfil our objectives, we anticipate a further modest improvement in profit in the second half year and a strong performance in 2005."

Revenue from operations in the second half of 2003 fell 5.2% to $506.3 million from $534.3 million a year earlier.

Net debt as at December 30 2003 had fallen back to $124.9 million compared with $206.8 million at the end of 2002.

HWE's construction arm, HWE Civil had a 55% fall in revenue and HWE Mining dropped 9% to $325 million.

James said a number of large contracts were completed during the period and delays in the start-up of new work caused the revenue falls. However, he said work on hand had climbed to $1.55 billion from $1.1 billion a year ago, and the company had secured a further $700 million of new contracts since the end of 2003, taking the current order book to $2.2 billion.

"HWE is on track to report a positive net profit after tax for the year ending June 2004," the company said.

"Directors continue to target a return to a dividend payment for the six months ending June 2004." ConstructionEquipmentNews.net