ConDig (02-May-17).  Granite Construction Inc reported deeper losses in the first quarter of this year amid a rise in expenses and squeezed margins.

The Watsonville, California-based company posted a net loss of $23.8 million for the three months ended March 31 compared with a loss of $10.4 million in the first quarter of last year.

It comes as Granite reported selling, general and administrative expenses rising to $61.8 million compared with $56.1 million in the year-ago period, while gross profit margin was 5.4% compared with 8.9%.

The total company backlog was $3.44 billion, up 1.5% year-over-year.

But revenue was up 6.6% to $468.4 million in the first quarter compared with $439.5 million in the first quarter of last year.

Gross profit at the company’s construction division rose 3.8% to $27.9 million compared with $26.9 million in the first quarter last year, while revenue jumped up 8.3% to $226.8 million compared with $209.5 million a year earlier.

Improvement in the Southwest and Kenny regions was offset by weather-impacted operations across the majority of the West, Granite said.

Gross loss in the construction materials division was $5.4 million in the quarter compared with a loss of $1.2 million last year, while revenue was flat compared to last year at $34.5 million.

The gross loss increase from last year was driven by exceptionally wet winter weather, which significantly hampered both aggregate and asphalt production, the company added.

For the year, Granite expects low-double digit consolidated revenue growth.