Member Article

Balfour Beatty report dramatic profits slump

British infrastructure services firm Balfour Beatty say profits have fallen dramatically, by 32%, between 2012 and 2013.

Balfour said challenging economic conditions and operational issues in UK construction, and the sudden cancellation of capital projects in Australia, had caused the poor results.

Underlying profits stood at £187 million in 2013, down from £277 million in 2012.

During the year Balfour sold its UK facilities management business for £155 million in cash, and Mainland European rail operations in Spain and Scandinavia.

CEO Andrew McNaughton said the firm expected to make modest progress in 2014, bolstered somewhat by a strong intake of US orders in its construction business.

He said: “In 2013 we faced challenging economic conditions in several markets and experienced operational issues in the UK construction business.

“The remedial actions taken in underperforming areas are delivering results and have positioned us better for the future. Continuing to improve operational delivery and supply chain management will remain a particular area of focus throughout 2014.”

This was posted in Bdaily's Members' News section by Tom Keighley .