ConDig (08-Aug-17). Profit at Tutor Perini Corp surged 43% in the second quarter from the year-ago period as revenue at the civil, building and specialty construction company was roughly flat.
The Los Angeles, California-based company booked net income for the three months ended June 30 of $30.1 million compared with $21.4 million for the second quarter of last year.
It comes as revenue was $1.24 billion compared with $1.3 billion a year earlier, while project backlog was $7.6 billion, up 21% compared with $6.2 billion as of the end of December.
The second quarter period included a $37 million legal settlement that the company received in June from Bank of America Corp (BofA) following the resolution of a lawsuit. It followed claims the bank defrauded the company by selling it millions of dollars of auction-rate securities it knew were on the verge of failing.
New awards and adjustments to contracts in process totaled $1.6 billion in the second quarter and $3.7 billion in the first six months of the year, well outpacing revenue in both periods, the company reported.
Income from the construction division, however, dropped to $34 million from $48.8 million in the same period last year. The decrease was primarily due to unfavorable project adjustments recorded on certain mechanical projects in New York.
“Our backlog grew again this quarter as a result of the strong market demand we have been pointing to for some time,” said Ronald Tutor, chairman and chief executive officer of Tutor.
“Our increased backlog and continued success in winning new projects reflects the underlying strength of our business.”
Tutor added that although second quarter operating results did not meet company expectations, he believed it was positioned for improved results in the upcoming quarters.
The company affirmed its guidance for this year, with revenue expected to be in excess of $5.5 billion and diluted earnings per share expected in the range of $2.10 to $2.40, based on its current backlog and market outlook.
The company reported that its civil division was the major contributor to new award activity in the first half of this year, including the I-74 bridge project in Iowa valued at $323 million, the East Side Access CQ33 mass-transit project in New York valued at $292 million and two healthcare building projects in California collectively valued at $154 million.
Last week, the company announced that a joint venture team led by its subsidiary, Lunda Construction Co, was selected for a $239 million contract to revamp the 35W and Lake Street in Minnesota.