10th May 2007 07:10
Balfour Beatty PLC10 May 2007 10 May 2007 BALFOUR BEATTY PLC AGM STATEMENT ============= When he reports to shareholders this afternoon at the Annual General Meeting ofBalfour Beatty plc, the international engineering, construction, services andinvestment group, Sir David John KCMG, Chairman of Balfour Beatty, will say: "As is our customary practice, I would like to update you on trading so far thisyear. "I am pleased to report to shareholders that trading in 2007 to date is in linewith expectations. Our markets remain strong and continue to offer us a range ofgood opportunities. Our order book has grown further since the end of last year,even before taking account of the very substantial order book of Balfour BeattyConstruction (LLC), formerly Centex Construction, the acquisition of which wascompleted on 30 March this year. "In the Building sector, early progress has been good, with order intake andactivity levels particularly strong in the UK building construction businessesand work proceeding satisfactorily on a range of major projects. The newfacilities management contracts for the Department for Work and Pensions and theMetropolitan Police were mobilised successfully. "The acquisition of Centex Construction (now Balfour Beatty Construction LLC)gives us profitable critical mass in the US and, in conjunction with Heery andour new US PPP business, brings substantial new business developmentopportunities there. In April, Balfour Beatty Construction LLC was awarded the$525 million military housing contract for the US Navy in the South-East. "In Engineering, progress has been steady. In early March, Balfour Beatty PowerNetworks secured the five-year £550 million Eastern Overhead Line and CablingAlliance with National Grid plc and Balfour Beatty Utilities was awarded a majornew contract by Yorkshire Water. Performance in the US continued to improve andmajor new contracts were secured in Texas and California. "In Rail, trading was significantly stronger than in the first half of lastyear, with an improved performance in the US augmented by some good settlementsin the UK. Work on the rail system at Terminal 5, the East London Line and forLondon Underground progressed satisfactorily. Preferred bidder status has beenachieved this week, in joint venture, for the rail systems for the new Gotthardbase tunnel, with a value to the company likely to approach £200 million. Fullerdetails will be announced in due course. "In Investments, performance was as anticipated, affected by significantlyincreased bid costs as we extend Balfour Beatty Capital's business beyond the UKPPP market in the UK, the US, Germany and Singapore and by the performance ofour 20% interest in Metronet, the current position on which was covered in ourstatement to the market on 18 April of this year. "The acquisition of Exeter International Airport was completed early in theyear. Subsequently, 40% of the equity invested in this asset has been sold toGalaxy, the international transportation equity investment fund, for a cashconsideration of £12 million. "Since the year end, we have been appointed preferred bidder for a £152 millionhospital scheme in Fife and have reached financial close on the £36 millionDerby Street Lighting concession. "We have this morning announced an agreement to sell our 24.5% interest inDevonport Management Ltd to Babcock International Ltd for a cash considerationof approximately £86 million, as a result of which we will recogniseapproximately a £50 million exceptional profit in our half-year results. The netimpact of the sale will be marginally earnings dilutive. "As stated in our Annual Report, we are making good progress in pursuing ourstrategic priorities through investment and acquisition and continue to add toour earning power as a result. We expect to make good progress in 2007." ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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