Impairment charge means Q2 loss for Tutor Perini
By Sarah Ann McCay08 August 2012
US contractor Tutor Perini has announced revenue gains of +20% for Q2, 2012, with total revenue of US$ 985 million, compared with US$ 820 million in the same period in 2011.
However, depressed economic conditions and an after-tax impairment charge of US$ 356 million led to Tutor Perini posting a net loss of US$ 348 million for the quarter. The charge related to write-downs on the value of Tutor Perini's goodwill and intangible assets.
Excluding the impairment charge, Q2 2012 net income was $7.5 million.
The company's backlog at the end of June stood at US$ 5.9 billion. New contract wins in the quarter included a US$ 178 million courthouse in Florida, a US$ 99 million electrical subcontract for a civil infrastructure project on the west coast, a US$ 95 million hospitality project in Nevada, and a US$ 94 million task order contract for the U.S. Army Corps of Engineers for the construction of three electrical substations and transmission lines in Afghanistan.
Year to date revenues showed a +32% increase in revenue from construction operations at US$ 1.9 billion, compared to $1.4 billion for the first six months of 2011 fiscal. Tutor Perini attributes the increase in revenues to contributions from 2011 acquisitions and the completion of several large projects.
Looking ahead, the company forecasts year-end revenue to achieve between US$ 4 billion and US$ 4.5 billion, slightly down on its earlier forecast of up to US$ 5 billion.