Balfour Beatty profits up after US acquisition
Balfour Beatty joined other construction giants in hailing a surge in profits, but - like its rivals - warned against unbridled optimism for complete recovery.
Hard work: This year will be tough in the UK, despite recent contract wins
Balfour's underlying profits rose 21% to £338m in 2010 following the integration of its recently acquired American project manager Parsons Brinckerhoff.
This growth overseas actually offset weak construction markets in the UK and the US.
Balfour's shares are up 9.5p (2.8%) on the day so far at 351.1p.
The firm, which carries out upgrades on roads and railway lines and builds hospitals and schools, said it has a record order book of £15.2bn, up 8% on a year ago, after a series of contract wins in the UK and abroad.
These included work on Heathrow's Terminal 2B, Crossrail and Building Schools for the Future projects, as it recovered from earlier uncertainty surrounding the Government's comprehensive spending review.
But it expects its UK business, which accounts for about half of its revenues, to remain difficult this year.
Its infrastructure investments division had an excellent year in the UK after winning four schools projects, including programmes at Ealing and Oldham, and is waiting to hear back on a number of other bids.
Balfour expects its support services division, which won a £250m contract from North East Lincolnshire Council to provide highways transportation and planning, to benefit as more local authorities outsource work to the private sector.
Although its professional services division, which helps design and manage construction projects, performed well overseas its revenues declined in the UK.
The firm's recent projects include the widening of the M25, improvement works on the A3 near Hindhead in Surrey and the M74 near Glasgow, as well as building the aquatic centre at the London 2012 Olympic Park.
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