UGL‘s outgoing chief executive Richard Leupen has forecast "significant" consolidation in the engineering sector as the contractor nears completion of the $1. 2 billion sale of its DTZ property arm. "If you’re a $300 million listed engineering company then you shouldn’t be there, you should be merged with someone else," Mr Leupen told The Australian Financial Review after UGL delivered a 22 per cent rise in underlying net profits to $111. 7 million. "So many people entered the industry at the top of the cycle and there’s not enough work for them all.
UGL’s underlying net profits missed the company’s $120 million forecast but Mr Leupen claimed the contractor had "done well" to deliver close to revised guidance, arguing that profit margins in the group’s engineering business were improving.
Read more here: SMH