Speaking at the company’s annual general meeting yesterday, Leighton chairman Stephen Johns apologised to shareholders for its disappointing 2012 first quarter results, after reporting a loss after tax of $80 million for the three months to March 31.

Despite the loss, and with the European financial crisis undoubtedly on the back of everyone’s minds, Johns was upbeat about the future.

“That Australia will be affected by the European financial crisis is evident in the volatility and recent decline in the Australian share market,” Johns said.

“However, our businesses are not in Europe and we are not directly exposed to the crisis.”

Johns said the strong economic backbone of Australia and Asia were expected to grow for the foreseeable future, which would help restore Leighton’s performance and would enable the delivery of significant shareholder returns.

“While your board shares the frustration of shareholders with the most recent profit write- backs, we remain confident in the underlying strength of the business,” he said.

“Leighton is in the enviable position of being a very strong company.”

In 2011, Leighton reported a loss for the first time in 30 years.

The company has also been struggling under the weight of performance issues at its Airport Link toll road in Brisbane and Victorian desalination water plant projects.

Several senior executives have also fled the company in what has been a difficult year for Leighton.

In order to improve its balance sheet, Leighton said it would separate its Middle Eastern joint venture Al Habtoor Leighton into two parts.

It said the move would create one business which was profitable and a legacy business which would deal with receivables.

Also speaking at the AGM, Leighton chief executive Hamish Trywhitt attempted to win back shareholder support by outlining the company’s strategy for the near-term.

“We are focused on three key strategies, namely restructuring our operating model, strengthening our balance sheet, and delivering net margin improvement,” he said.

“What this means for Leighton is that once we’ve dealt with the immediate issues and reshaped the way we do business and manage risk, we will have a unique set of opportunities.”

Trywhitt said considering Asia was tipped to grow at around 6% this year, Asia would assist Leighton in strengthening its business.

“We’re part of Asia, we’re part of the Asian century, we’re part of a new era of growth and that means that Leighton is extremely well placed.”

Trywhitt said the company had the construction and mining skills to service Asia’s needs as the economies of the region grew.

Leighton operates in more than 25 countries in Asia, the Middle East, Southern Africa and throughout Australia.

This article first appeared in ILN's sister publication MiningNews.net.