Granite Construction boasts increased construction materials revenues in third quarter 2017
Granite Construction reported a net income of $46 million for the third quarter of 2017. This compares with a revenue of $37.2 million in the third quarter of 2016.
In the third quarter of 2017, the company’s construction materials segment revenue increased 9.1 percent to $98.1 million, compared with $89.9 million in the same time period in 2016. In addition, its third quarter gross profit increased 33 percent to $16.8 million, compared with $12.6 million in the third quarter last year. Finally, Granite Construction reported a gross profit margin of 17.1 percent for the construction materials segment, compared with 14 percent for the same time period last year. According to the company, the gross profit and margin improvement was mainly owing to improved external demand across the West.
“Our teams continue to execute safely on record backlog and our outlook remains extremely strong,” says James Roberts, president and CEO of Granite Construction. “Overall, we continue to expect solid, improving performance across our business in 2018 and beyond. In addition, efforts to streamline overhead are paying off. As a result, we have produced high-teens revenue growth through the first nine months of 2017, while selling, general and administrative expenses have increased only about 2 percent. We continue to target benefits from the continued balance of strong growth and disciplined cost control.”
For the remainder of 2017, the company expects to see mid- to high-teens consolidated revenue growth and a consolidated EBITDA (earnings before interest, tax, depreciation and amortization) margin of 6 percent to 6.5 percent.
“Steady private market demand combined with improving public funding trends continue to provide our business with growth opportunities across geographies and end markets,” Roberts says. “We believe that we are in the early stages of this investment cycle, with much of the public market visibility tied to actions taken over the last few years at state and local levels to increase infrastructure investment.”
About the Author: Allison Kral
Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.Subscribe to Pit & Quarry
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