Major infrastructure contractor Fulton Hogan is poised for further growth after announcing yesterday a five-year joint venture with John Holland, one of Australia's leading contracting, engineering and services providers.
Fulton Hogan managing director Nick Miller said the strength of the joint venture was based on Fulton Hogan's resources, geographic presence and relationships combined with John Holland's specialist engineering expertise in areas such as rail, tunnelling and power and energy resources.
"This strategic partnership provides a new level of competition and skill set for the New Zealand infrastructure sector.
"Together, we will target projects in areas such as tunnelling, rail, power, communications and minerals processing over the next five years," he said.
John Holland group managing director Glenn Palin said the partnership represented an important new overseas venture for the group.
The announcement came as Fulton Hogan released its annual results to shareholders.
The report has not yet been posted online, but chairman Ed Johnson said consolidated revenue increased 16% for the year ended June and the consolidated operating surplus of $92.6 million was down 8% on last year.
Last year's annual financial statements showed Fulton Hogan's revenue was nearly $1.9 billion and the consolidated profit was $101 million.
Mr Johnson's figures would mean revenue for the June 2010 year was around $2.2 billion.
Mr Johnson said in his shareholders' report that the 2010 result was heavily influenced by the execution of two important initiatives for the future of the group - reaching agreement to buy back Shell's shareholding over the coming four years and the full acquisition of Pioneer Road Services, in Australia.
Mr Miller said Fulton Hogan achieved the "solid result" in a tough market, with the infrastructure sector still feeling the impact of the global financial crisis.
The acquisition of Pioneer Road Services was the largest in Fulton Hogan's 77-year history and represented an opportunity for Fulton Hogan to become one of Australasia's leading asphalt and surfacing companies.
Fulton Hogan now had 5100 staff based in more than 100 locations throughout Australia and New Zealand, he said.
"The business is on track and is quietly achieving solid results in the Australian marketplace. Backed by the strong performance of our New Zealand contracting business, the result demonstrated the importance of our vertically integrated business model."
Mr Miller replaced Dave Faulkner as managing director at the start of the year after five years as the company's Australian chief executive.
