Balfour Beatty plc (LON:BBY) reports that profits fell by 7% in 2012.
Balfour Beatty (LSE: BBY) saw its share price plunge this morning, down 6.1% -- 17.50p -- to 269.50p. This followed the release of the firm's final results for the year ending 31 December 2012.
The international infrastructure group reported that underlying profits fell by 7% to £309m, down from £331m the previous year. Revenue decreased 1%, slipping to £10.90m from £11.04bn in 2011, while underlying earnings per share dropped off by a further 1%, or 0.5p, to stand at 35p per share for 2012.
Balfour did report an increase in its full-year dividend, however, raising it 2% to reach 14.1p. This puts the British construction group on a decent yield of 4.9%.
The company blamed continued weakness in the construction market both in the UK and the US for the drop-off in profits, though did see signs of growth in target markets. Indeed, chief executive Ian Tyler commented that this particular focus "is reflected in the continuing shift in our order book towards economic infrastructure".
"We have delivered a set of results for the full year that demonstrated resilience in underlying earnings and a stable order book in the face of continuing challenging conditions in the construction markets in the UK and USA. We have also made good progress in the implementation of measures designed to increase organisational efficiency and are on track to realise the anticipated benefits.
"While we still believe that construction markets in 2013 will be challenging, our actions to date and ongoing strategic focus on growth markets position us well for the medium term."
Balfour also announced that it has won a multi-million pound rail contract to build two miles of the Crossrail route and a new rail station in London, to the tune of over £130m, while a decision has been made to divest itself of the Mainland European rail operations as it no longer fits the company's strategy.
Today's news follows a fall of 20% in a single day back in November after announcing that its order book fell 4% in the third quarter, due to a "weaker-than-anticipated" UK performance and a depressed US construction market. The shares regained much of their value, so some income investors may consider today's fall in share price as a similarly lucrative chance to boost their high-yielding portfolios.
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> Sam does not own shares in Balfour Beatty.