Granite improves despite “fierce” competition
By Chris Sleight04 August 2011
US contractor Granite Construction saw its revenues for the second quarter of the year rise +6.7% to US$ 485 million. The company made a net profit of US$ 6.2 million, compared to a loss of US$ 2.6 million in the same period last year.
Granite president & CEO James H. Roberts said, "There is no question that competition remains fierce and funding uncertainties are weighing heavily on many of our customers. To successfully manage through this cycle, we continue to focus our efforts on building quality backlog, managing our cost structure and operating effectively and efficiently in all aspects of our business."
The biggest improvement was seen at Granite's construction arm, where revenues rose +10% over the quarter to US$ 261 million, thanks to a higher volume of work. However, the division's gross profit margin fell from 10% to 9%, which the company said reflected the "intense competition" in the sector.
There was also a rise in revenues in Granite's Large Project Construction division, but its sales of construction materials fell compared to Q2 last year.
Mr Roberts added that the company had added some US$ 527 million of work to its order backlog in the course of the quarter.