logo-loader
viewBalfour Beatty plc

Balfour Beatty collapses on profit warning

train_track350_517e2b8876784.jpg

Infrastructure group Balfour Beatty (LON:BBY) has slumped over 10% after a profit warning from its UK construction business.

The company, which helps build and repair Britain’s roads and railways, said the business would deliver “significantly lower profits” in 2013 than management had expected in March. It now believes profits will be around £50mln lower than originally thought.

Balfour Beatty is in the middle of a “substantial organisational restructuring” in a bid to keep costs to a minimum.

“The UK construction market has been a challenging environment in which to win and execute work,” a statement from Balfour Beatty read.

“Market conditions, which deteriorated significantly in the second half of 2012, continue to be difficult.

“In these extremely tough conditions, our UK construction business has been concurrently implementing a substantial organisational restructuring in order to streamline the business for future success while reducing costs to remain competitive.”

The company insisted operations outside the UK are on track to meet its goals, while its balance sheet is “strong” despite the profit shortfall.

Shares fell 11% to 219p each.

Quick facts: Balfour Beatty plc

Price: 217.8 GBX

LSE:BBY
Market: LSE
Market Cap: £1.5 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: CytoDyn's therapy used to treat New York coronavirus...

CytoDyn Inc (OTCMKTS:CYDY) CEO Nader Pourhassan tells Proactive the biotech shared positive test results today from seven coronavirus (COVID-19) patients who were treated with the company’s drug leronlimab at a leading medical center in the New York City area. Pourhassan, together diagnostics...

14 hours, 16 minutes ago

2 min read