Granite reports full year loss
24 February 2011
US contractor and construction materials producer Granite Construction reported a net loss of US$ 59 million in 2010, compared to net income of US$ 73.5 million in the previous year.
A US$ 257 million decline in construction sales pushed full-year revenues down to US$ 1.8 billion (from US$ 2 billion in 2009), while fourth quarter charges of US$ 107 million related to the company's restructuring strategy also dragged the 2010 result into the red.
Granite's contract backlog at the end of 2010 stood at US$ 1.9 billion, compared with US$ 1.4 billion at December 31, 2009.
President and CEO James Roberts said the company would press ahead with its enterprise improvement plan, which aims to reduce Granite's workforce and sell off its real estate business over the next three years.
But Mr Roberts' outlook was cautiously optimistic - he warned that competition in the construction market "will remain very tough" and added that the company expects demand from the private sector for construction materials to remain under pressure in 2011.
He also said that the company was operating in "in one of the most difficult economic environments [Granite] has faced in decades".
"Funding for transportation infrastructure will continue to be a focus for us this year as we advocate for a multi-year highway bill that will provide the industry with much needed visibility," said Mr Roberts.