<span class="" id="parent-fieldname-description"> Rail operations proved one of the only positive aspects of a glum first half result from contractor UGL. </span> <p>Net profit for the engineering firm fell 53% to $26m in the six months to December 31, 2012 down from the $55.4m net profit from the same period in 2011.</p><p>Key to the decline were $25m in costs from a restructure. UGL said that this meant its underlying net profit – which ignores the $25m restructure cost – was $51m, but this is still down 29% from the underlying net profit in the corresponding period in 2011, which was $72.m.</p><p>“The half was impacted by UGL undertaking significant restructuring, rebranding and business repositioning initiatives to address the markets we see ahead,” UGL managing director and CEO Richard Leupen said.</p><p>“Cost overruns on several non-performing infrastructure projects also contributed to the result,” he continued. “However, these are now either completed or near complete.”</p><p>“A slowing domestic resources sector also contributed to a softer first half.”</p><p>Despite the negative impacts, Leupen was high on UGL’s rail operations throughout the period.</p><p>“Our rail operations continue to deliver a solid contribution reflecting our market-leading position,” he said.</p><p>According to UGL’s half-year statement to the stock exchange, the company’s rail operations continued to deliver a solid contribution in the first half reflecting its market leadership and the on-going growth in resources volumes.</p><p>“The business secured a number of key wins in the period including the $540m renewal of the maintenance contract with Pacific National Rail which includes the upgrade and provision of maintenance services for a portion of their locomotive fleet, as well as locomotive orders for various blue-chip clients including Rio Tinto, CFCLA and Pacific National Rail.”</p><p>Leupen said that UGL saw opportunities available in several sectors, including rail, “and our bidding is increasing in these areas of the business.”</p>
