Granite Construction Incorporated
) has been awarded a $48 million runway rehabilitation contract by
the Alaska Department of Transportation and Public Facilities.
The scope of work entails rehabilitation of Runway 7L/25R at the
Ted Stevens Anchorage International Airport. Improvements include
rehabilitation of connecting taxiways, replacement and upgrading of
airfield lighting and signage, and construction of a new access
road. Granite Construction's crew will place over 225,000 tons of
hot-mix asphalt and import approximately 350,000 tons of borrow
The job will be completed under two separate notices to proceed
valued at $19 million and $29 million, respectively. Construction
is slated to start in second-quarter 2014 and expected to be
completed by fourth-quarter 2015.
On Apr 30, Granite Construction reported adjusted first-quarter
loss per share of 49 cents compared with the year-ago quarter's
loss per share of 57 cents. The company's net sales edged up 0.3%
year over year to $380 million as increase in Large Project
Construction and Construction Material sales were offset by
declines in the Construction and Real Estate segments.
Total contract backlog increased to $2.6 billion as of Mar 31, 2014
from $2.5 billion as of Dec 31, 2013 and $2.4 billion as of Mar 31,
For 2014, Granite Construction expects revenues in the range of
$2.4 billion to $2.8 billion. Gross profit is expected to improve
significantly over the 2013 level. Consolidated EBITDA margin is
projected in the range of 5% to 7%.
Granite Construction's backlog, project funding and financing have
improved and private constructions are also showing signs of
growth. Furthermore, underground diversification opportunities in
power and tunnel position the company for growth. The backlog at
quarter end reflects a diverse, healthy portfolio of projects which
bodes well for the company. Both the Construction and Large Project
Construction segments are expected to gain momentum starting second
quarter with Large Project recognition later in the year, driving
overall performance in 2014.
Watsonville, CA-based Granite Construction is a leading
infrastructure contractor and construction materials producing
company. Its project teams represent the best in the industry,
serving both public and private-sector clients in transportation,
power, federal, tunneling, underground, industrial/mining and water
Granite Construction currently carries a short-term Zacks Rank #3
(Hold). Some better-ranked stocks in the building and heavy
construction industry worth considering are
EMCOR Group Inc.
Sterling Construction Co. Inc.
Tutor Perini Corporation
). All of these carry a Zacks Rank #2 (Buy).
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