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Balfour Beatty feels the effects of construction slowdown

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Shares in Balfour Beatty (LON:BBY) fell 3% in early trade as it felt the effect of a slowdown in the construction market at home and in the US.

Underlying pre-tax profits were off £24mln at £310mln, but ahead of consensus City forecasts for a surplus of around £295mln.

Revenue fell around 1%, or 4% before the impact of foreign exchange rate movements and acquisitions.

The company said it remains on track to deliver cost savings of £80mln by 2014. A total of £36mln of those savings were achieved last year at a one-off cost of £61mln.

Investors were rewarded with a 2% increase in the dividend payment to 14.1 pence.

Chief executive Ian Tyler said: "While we still believe that construction markets in 2013 will be challenging, our actions to date and ongoing strategic focus on growth markets position us well for the medium term."

At 9am, the shares were changing hands for 279.3 pence.

 

Quick facts: Balfour Beatty plc

Price: 255 GBX

LSE:BBY
Market: LSE
Market Cap: £1.76 billion
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