On $97M quarterly loss, Granite Construction shifts to smaller projects
constructiondive | August 03, 2019
Granite Construction, one of the country’s largest contractors, reported a net loss of $97.8 million for the second quarter of 2019. Granite is No. 4 on ENR’s list of top domestic heavy contractors in the U.S. and No. 24 overall. In an earnings call on Friday, CEO James Roberts attributed some of the downturn to delivery methods that put too much risk on recent megaprojects and said that the firm is changing the way it does business. The decline was caused by a combination of increased project costs due to weather delays and by the execution of disputed work in the firm’s heavy civil sector that resulted in before-tax charges of $143.7 million, according to a company release. These issues brought the full amount of revenue reduction to more than $114.2 million in the second quarter, causing the company to revise its full year expectations for 2019, Roberts said during the call.