WATSONVILLE – Granite Construction reported a significantly improved financial picture for the year and watched company shares shoot up more than 8 percent. The numbers made Granite one of the top 10 biggest gainers Thursday among public companies traded on the New York Stock Exchange.
Company revenues for 2011 were $2 billion compared to $1.8 billion in 2010 and operating income was $99 million in 2011 compared to an operating loss the year before of $109 million which was related to a restructuring.
“Our solid performance in 2011 is the result of our continued successful project execution, the tremendous efforts of our people to improve efficiencies throughout the company and the significant reductions we have made to our cost structure,” said James H. Roberts, president and chief executive officer.
He said, however, that while “significant strides” in cost cutting and company infrastructure efficiencies will support longterm growth, the company has to be better than its competition and will focus on growth this year.
“We must look at new markets and we must differentiate ourselves from others in today’s highly competitive environment,” he said Thursday during a conference call with analysts and investors. “In addition to being strategic and disciplined regarding the projects we bid, we are taking a more proactive approach to business development, to strategic partnerships and to opportunities to broaden our public-private partnership efforts.”
The company is focusing on growing the business geographically and at targeted markets including its materials business and large projects.
Overall state revenues across the country have begun to rebound, Roberts said. The California state budget does not include cuts to transportation; however, federal funding for transportation is still in the air. While both house and senate are interested in seeing a funding bill, they are a long ways apart and may not reach a compromised by March 31 when an extension to the current bill expires.
AT A GLANCE
Granite Construction Inc. WHAT: Granite Construction Inc. is the holding company for Granite Construction Co., one of the largest heavy civil construction contractors that serves both public and private sector clients in the U.S.
HEADQUARTERS: 585 W. Beach St., Watsonville.
BACKGROUND: Founded in 1922, the company incorporated in 1990.
LEADERSHIP: James H. Roberts, chief executive officer and president.
INFORMATION: 724-1011; www.graniteconstruction.com
STOCK PRICE: On Thursday, shares trading on the New York Stock Exchange as GVA, climbed $2.18 to close at $29.21. In the last year, shares have traded between $16.92 and $29.68.
FINANCIALS: Revenues for 2011 were $2 billion compared to $1.8 billion in 2010. Net income for the year was $51 million, or diluted earnings per share of $1.31, compared to a net loss of $59 million, or a loss of $1.56 earnings per share in 2010. Fourth quarter revenues were $269.2 million compared with $214.1million a year ago.