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Govt rail investment key for EDI Downer growth prospects

<p>EDI Downer is expecting new business for its rail division to underpin future earnings growth.</p> <p>The company announced a record profit of $104m for 2004&#4705, but rail was one division that recorded a reduced turnover of $360.9m after the completion of several build contracts including stage two of the Millennium train, the company said.</p> <p>"But significant new orders during the period consolidated the division’s strong positioning across passenger and freight rollingstock supply and long-term maintenance and have underpinned future earnings growth," EDI Downer said.</p> <p>It has predicted a buoyant 2005&#4706, particularly in key markets in Australian and New Zealand.</p> <p>"Substantially increased levels of government expenditure in the upgrade and maintenance of essential infrastructure, especially in the rail and road sectors in Australia and New Zealand, were announced during the year and this trend is expected to continue over the next few years," the company said.</p> <br />