15th Aug 2007 07:01
Balfour Beatty PLC15 August 2007 15 August 2007 $730 MILLION OF NEW ORDERS FOR BALFOUR BEATTY CONSTRUCTION IN THE US First contract secured under new $30 billion US Department of Defense Base Realignment and Closure Programme ====================================== Balfour Beatty, the international engineering, construction, services andinvestment group, announces today that Balfour Beatty Construction LLC (BBC),its US building construction subsidiary, has been awarded four major contracts,including its first under the $30 billion Base Realignment and Closure (BRAC)Programme, to a total value of over $730 million. Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said: "Balfour Beatty Construction has performed in line with our expectations sinceacquisition and we are delighted to be adding to our order book withhigh-quality work in a number of sectors. It is particularly pleasing to securean early success under a major long-term programme which is of such enormouspotential to the business." Under the BRAC Programme, the US Army Corps of Engineers has awarded the firstphase of the National Geospatial Intelligence Agency to a joint venture ofBalfour Beatty and Clark Construction. Phase One - the $334 million "IntegratedDesign-Bid-Build" contract - is for construction integration phase services andfor site construction, the central utility plant and certain other supportingfacilities. It is anticipated that the project will ultimately be worthapproximately $1.5 billion, with the balance of the work awarded before the endof this year. Under the BRAC Programme, it is anticipated that there will be over 800 projectsat more than 200 bases across the US. Many of the projects involve extensivemodernisation and expansion programmes. Elsewhere, BBC has been awarded a $140 million contract for military housing atthe major military recruitment and training centre at Fort Jackson, SouthCarolina, by the US Army. The contract involves the construction of 615residential units. This contract award brings the company's total revenues inmilitary housing to over $2 billion, including five secured projects with atotal value of over $750 million on which work has yet to commence. In the private sector, it has also been awarded major contracts by DisneyCorporation and Bank of America. For Disney, it will build a $160 millionextension of Animal Kingdom in Orlando, Florida, comprising a new 340-unit,five-storey resort hotel with a full range of amenities, and convert theexisting Animal Kingdom facility into 110 units. For Bank of America, it willconstruct a $100 million, 750,000 square feet office tower, comprising 32floors, to house 1,200 Bank of America staff and other tenants, together with areconfiguration of the adjoining Ritz-Carlton Hotel. ENDS Enquiries to:Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors---------------- 1. Balfour Beatty completed the acquisition of Balfour Beatty Construction US (formerly Centex Construction) from Centex Corporation on 31 March 2007 for a gross consideration of £362 million ($126 million net of cash acquired with the company). 2. Balfour Beatty Construction is a top-tier US building company, well placed in a number of geographical and sector markets. It employs 1,500 staff. It has leading market positions in the Florida, Texas, Washington DC and North Carolina markets and in military housing. 3. The great majority of BBC's contracts are secured through qualifications based tendering, in which final cost is agreed only after design is substantially complete and the supply chain in place. Thus, cost and programme risk are substantially reduced and the business margins are highly predictable. 4. Balfour Beatty's annual revenues in the US are now approximately $3.5 billion, representing some 23% of Group revenues. 5. Balfour Beatty is a world-class engineering, construction, services and investment business, well positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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