Perini’s record revenues

Perini reported record revenues of US$ 5.6 billion for 2008, up +22% on the US$ 4.6 billion for 2007. However, following a US$ 202 million third quarter impairment charge relating to the company's acquisition of Tutor-Saliba Corporation - hit by cancellations and delays due to the current economic crisis - the company reported a pre-tax loss for 2008 of -US$ 75 million, down on the US$ 97 million pre-tax profit recorded a year earlier.

Construction sales increased +22% from US$ 4.6 billion in 2007 to US$ 5.6 billion last year. A company statement said this was due to increased work in the hospitality and gaming, healthcare, office and transportation markets in Las Vegas and California, as well as the impact of the merger with Tutor-Saliba.

The backlog at the end of 2008 was US$ 6.7 billion, down -12% on the US$ 7.6 billion reported a year previously. "The decrease in backlog reflects the current challenging economic environment," said chairman and CEO Ronald Tutor. "This has caused some customers to delay or reduce in scope certain construction projects that we anticipated to enter the backlog in the short term."

Outlook

Based on the current economic conditions, Perini believes there will be delays in new construction starts in 2009. "We are currently evaluating the US government's stimulus package to determine the timing and specific market opportunities that will become available to us," said Mr Tutor. "In light of the current economic conditions however, we are lowering our full-year 2009 guidance for revenues by approximately -8%.

"We believe the stimulus package will present a number of good opportunities for our company. We are very well positioned geographically as a financially strong and diversified building and civil infrastructure construction company," said Mr Tutor.