Watsonville, Calif.-based Granite Construction has reported a net loss of $12 million, or $0.31 per diluted share, for the first quarter of 2012 compared with a net loss of $9 million, or $0.24 per diluted share, for the first quarter of 2011.
“Overall, I am pleased with our start to the year as mild weather allowed many of our business units to work throughout the quarter, which is typically a slow quarter for our business,” said James H. Roberts, Granite president and CEO, said in a written statement. “Our results are in alignment with our expectations for the year,” Roberts added.
“As we manage our way through today’s challenging market, we are also following a well-developed plan that will further strengthen our company and position us for long-term profitable growth,” Roberts continued in the written statement. “We are encouraged by the opportunities to grow, diversify our business model and optimize our asset portfolio. We also remain intensely focused on increasing efficiencies and controlling costs throughout the company.”
First-quarter 2012 Financial Results
Large Project Construction
“We are encouraged by the number of Large Project opportunities as well as the healthy bidding activity we are seeing throughout many of our markets in the West. Our outlook is tempered, however, by the intensely competitive environment that we anticipate will continue through the balance of the year,” Roberts said.
For 2012, Granite expects Construction segment revenue to be $1 billion to $1.1 billion with a corresponding gross profit margin between 9 percent and 11 percent. Large Project Construction segment revenue is expected to be $1 billion to $1.1 billion with a corresponding gross profit margin between 12 percent and 14 percent. Construction Materials segment revenue is expected to be $200 million to $220 million with corresponding gross profit margin between 7 percent and 9 percent. In addition, sales, general and administrative expenses are expected to be between $170 million and $180 million for the year and net income attributable to non-controlling interest in joint ventures for the total company is expected to be in the range of $15 million to $18 million.