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Granite reports full-year, Q4 2010 results
Posted By Tina Grady Barbaccia On February 24, 2011 @ 1:30 pm In Economics,eRoadPro Newsletter,News & Analysis | No Comments
Watsonville, Calif.-based Granite Construction Inc. on Feb. 23 reported a net loss of $59.0 million for the full year 2010, compared with net income of $73.5 million for the full year 2009. Loss per share for the year was $(1.56), compared with earnings per diluted share (EPS) of $1.90 in 2009.
For the fourth quarter of 2010, Granite reported a net loss of $50.0 million, compared with net income of $16.0 million for the fourth quarter of 2009.
Loss per share for the quarter ended Dec. 31, 2010 was $(1.32), compared with EPS of $0.41 earned in the prior year period. Included in the fourth quarter of 2010 were restructuring charges of $107.3 million associated with the company’s Enterprise Improvement Plan. The portion of restructuring charges attributable to noncontrolling interests was about $20.0 million.
“During the fourth quarter, we made solid progress towards reducing our cost structure and strengthening the business for the long-term,” Granite President and CEO James H. Roberts said in a written statement. “In addition to the necessary but difficult decision to reduce our workforce, we are focusing on optimizing our core business and have committed to divesting of our real estate investment business over the next three years.”
Roberts continued, “We are undoubtedly operating in one of the most difficult economic environments our company has faced in decades. Despite these challenges, we grew backlog in both of our key segments, maintained a solid balance sheet, and continued to position the company to recapture momentum in 2011.”
Full-year 2010 financial results
Large Project Construction
Fourth-quarter 2010 financial results
Large project construction
“The actions we are taking to reduce our cost structure are expected to lead to a substantial improvement in our bottom line results in 2011,” Roberts said. “In addition, we anticipate a positive impact to earnings from some large projects reaching the profit recognition threshold. While the pipeline of large project bidding opportunities remains full, our goal is to build high quality backlog that will provide the best return for our shareholders. The large project construction market offers a great deal of near-term growth potential for our business and we are excited about the opportunities that this segment of our business will provide.”
Roberts said Granite’s construction segment is starting 2011 with a healthy backlog of work. However, he anticipates the competitive environment will remain very tough.
“We expect the demand for our services and construction materials from the private-sector in the West will remain under pressure for the balance of the year,” Roberts said. “Funding for transportation infrastructure will continue to be a focus for us this year as we advocate for a multi-year highway bill that will provide the industry with much needed visibility. Despite these macro-economic challenges, we will continue to move forward with our strategy to operate our business as efficiently and effectively as possible.”
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