Tutor Perini first half income drops
09 August 2011
Tutor Perini reported net income of US$ 26.6 million for the first six months of 2011, down from US$ 53.7 million in the first half of last year. Revenues also slipped to US$ 1.4 billion for the first six months of the year, compared to US$ 1.8 billion in 2010.
The US contractor said the decline reflected the completion of projects in its building and civil segments, together with an overall lag in the timing of the start-up of new work in its backlog.
However, Tutor Perini also reduced its full-year revenue forecast from between US$ 4.2 billion and US$ 4.7 billion to between US$ 3.6 billion and US$ 3.9 billion, and said the reduction reflected "current economic conditions resulting in reduced levels of new work acquired during the first half of 2011".
Tutor Perini's backlog of uncompleted construction work stood at US$ 5 billion at 30 June, compared to US$ 4.3 billion at the end of 2010. The company's order backlog was boosted by its acquisitions during the first half - approximately US$ 1.6 billion of backlog was acquired as a result of its acquisitions of civil contractor Lunda Construction as well as electrical and mechanical services provider GreenStar Services, contractor Anderson Companies, and tunnelling and mining contractor Frontier-Kemper Constructors.
Chairman and CEO Ronald Tutor said the company had accomplished its goal of expanding its geographic reach and becoming more diversified in construction markets through its first half acquisition strategy.
"We believe the combined company is very well positioned to capitalise on opportunities with the expectation that the US economy, and the associated impact on our industry, will improve in 2012," Mr Tutor said.
