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.