Granite posts mixed results
By Sarah Ann McCay08 May 2012
US contractor Granite Construction saw revenues increase and backlog grow in the first quarter of 2012, compared to 2011, despite an increased operating loss and worsening gross margin.
The mixed results saw the company report a jump in revenues of US$ 53 million to US$ 310 million for the quarter, compared to US$ 257 million in Q1 2011. The company attributed this growth to increases in construction revenues.
The company's gross profit margin dropped to 8%, compared to 12% in 2011, this drop followed a deferred profit on a project in New York.
Granite Construction saw a net loss of US$ 12 million for Q1 2012 compared with a net loss of US$ 9 million, for the same period in 2011.
However, total contract backlog as at March 31, 2012, stood at US$ 2.1 billion compared with US$ 2 billion for Q1 2011.
Construction revenue for the quarter increased +27% to US$ 118 million due to a higher volume of work completed in the quarter as well entering the year with a higher volume of backlog. Large Project Construction revenue for the quarter also increased, up +19% to US$ 164 million.
Construction Materials revenue also saw growth, with Q1 2012 figures totalling US$ 26 million compared with US$ 24 million for the same period last year.
For 2012, Granite expects Construction segment revenue to be $1 billion to $1.1 billion. Similar figures are expected from Large Project Construction.
James H. Roberts, president and CEO of Granite, said he was ‘pleased' with the start to the year, pointing out that mild weather had allowed many of the company's business units to work throughout the quarter. He said the results were in line with expectations for the year.