Mixed fortunes at Tutor Perini
By Sarah Ann McCay08 May 2014
Tutor Perini Corporation posted a mixed bag of financial results for the first quarter of 2014, with revenue down -3.8% to US$ 955.2 million compared with US$ 992.9 for the same period last year.
The US contractor attributed the drop in revenue primarily to decreased activity on hospitality and gaming projects in California, Arizona, Nevada, and Louisiana, which was partially offset by the ramp-up of civil and building projects at Hudson Yards in New York and a rail transportation project in California.
Income from construction operations was US$ 41.5 million for the first quarter, compared to US$ 36.1 million for the same period last year. Net income was US$ 15.9 million for the first quarter, compared to US$ 14.8 million for the same period last year.
Tutor Perini said the increase in net income was due primarily to an overall increase in volume in its civil segment, which was partially offset by Hurricane Sandy-related projects performed in the first quarter of 2013.
The firm’s backlog continued to grow, up US$ 2.2 billion in the 12 months to March 31, 2014 at US$7.7 billion. Significant contract wins included two New York MTA East Side Access projects collectively valued at US$ 844 million, a US$ 113 million technology building project in California, the US$ 92 million I-564 Intermodal Connector design-build project in Virginia, and a US$ 74 million wastewater treatment project in New York.
Ronald Tutor, chairman and CEO, said, “The company delivered another quarter of strong results, which were in line with expectations. Our higher-margin civil and specialty contractors segments continue driving backlog growth, and our civil segment is driving profitability. We are benefiting from the execution of major multi-year projects awarded over the past 12 months, and the outlook for additional large new awards remains favourable.”