Large projects push up Granite’s revenues
By Sarah Ann McCay05 August 2012
Granite Construction has reported mixed financial results for the second quarter of 2012, with an increase in large project revenues offset by a decline in construction revenue.
The US contractor reported Q2 2012 earnings of US$ 1.9 million, compared to US$ 4.9 million year on year. Earnings were affected by a US$ 4.6 million increase in operating income, driven by costs associated with the execution of large projects.
Revenues totalled US$ 540 million compared with US$ 485 million in 2011. This was driven by an increase in Granite's large project construction segment, which saw revenue increase +40.9% to US$ 229 million. Construction revenue for the quarter decreased -5.9% to US$ 245 million.
Construction materials sales for the quarter jumped by US$ 5.2 million to reach US$ 63.3 million, compared with US$ 58.1 million for the same period last year.
Granite's contract backlog at June 30, 2012, was US$ 2 billion compared with $2.1 billion in 2011.