Court ruling dents Tutor Perini’s Q3 results
16 November 2015
Tutor Perini’s third-quarter 2015 figures show a revenue of US$ 1.3 billion, an increase of 7% on the same period last year.
Net income for the period, however, stands at US$ 19.7 million, compared with US$ 35.7 million in 2014, due to a pre-tax charge placed on the company by an appeal court, following a joint-venture litigation matter for which Tutor Perini assumed liability.
Excluding the impact of the charge, the company’s net income for the period was US$ 33.7 million, a decrease of only US$ 2 million on the previous year’s figure.
Tutur Perini’s revenue increase in the third quarter of 2015 is due largely to the company’s activity on numerous building projects in California, a runway reconstruction project in New York and electrical projects at Hudson Yards in New York.
The increase was offset to some extent by decreased activity on projects at the World Trade Center and the United Nations in New York, as well as a number of smaller electrical projects in the southern US.
Describing the results, Ronald Tutor, chairman and CEO of Tutor Perini, said, “We are certainly disappointed with the outcome of the legacy litigation matter. However, there is still considerable positive news to report. Our Civil segment experienced another significant quarter of strong growth and profitability led by major work on the JFK runway project, which we completed months ahead of schedule, as well as continued progress on the CM006 and CS179 mass-transit projects for the Metropolitan Transportation Authority in New York.”
He added, “Our building segment also delivered another quarter of double-digit revenue growth due to a much improved marketplace that continues to grow, particularly in California and New York. In addition, we are reporting improved operating cash generation in the third quarter, yielding positive operating cash flow for the quarter and year-to-date.”
The company’s forecast for 2015 remains unchanged, with anticipated revenues of between US$ 5.0 billion and US$ 5.5 billion.