Large projects push up Granite’s revenues

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.