Lendlease Makes Extremely Costly Exit From Engineering and Services; FVE Falls to AUD 15.20

Lend lease reported first-half fiscal 2019 earnings of AUD 16 million, down from AUD 426 million in the prior corresponding period due to foreshadowed AUD 500 million of anticipated losses on multiple engineering projects. Leading on from this, Lendlease has decided to exit its engineering and services businesses and over the next six months work out the optimal approach to sell or separate engineering from the broader business. This is quite a back flip, as the firm had previously flagged its engineering business benefited from competitive advantages and was essential to its integrated model.