{"id":20918,"date":"2023-08-18T21:10:13","date_gmt":"2023-08-19T04:10:13","guid":{"rendered":"https:\/\/essential.construction\/news\/balfour-beatty-profits-dip-on-weak-us-office-tech-sectors\/"},"modified":"2023-08-18T21:10:14","modified_gmt":"2023-08-19T04:10:14","slug":"balfour-beatty-profits-dip-on-weak-us-office-tech-sectors","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/balfour-beatty-profits-dip-on-weak-us-office-tech-sectors\/","title":{"rendered":"Balfour Beatty profits dip on weak US office, tech sectors"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Balfour Beatty\u2019s pre-tax <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/balfourbeatty.com\/news\/balfour-beatty-2023-half-year-results\/?year=all&amp;parentId=1212\" target=\"_blank\"><span><span><span><span><span><span><span><span>profit dipped to 82 million pounds<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> ($104.7 million) for the first half of 2023, down from 83 million pounds a year ago, on a 9% increase in revenue to 4.5 billion pounds, the contractor announced during its <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.balfourbeatty.com\/investors\/results-reports-and-presentations\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>half-year earnings call on Aug. 16<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The London-based contractor said its U.S. segment, which had <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/balfour-beatty-2022-profit-jumps-106-percent-earnings\/646882\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>been a bastion of strength<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, took a hit due to weakness in the office and technology sectors in Texas and the Northwest, respectively. The firm\u2019s backlog fell to 16.4 billion pounds, a 7% decrease from last year\u2019s mark of 17.7 billion pounds.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>U.S. revenues slipped to 1.73 billion pounds, down from last year\u2019s 1.76 billion pounds. Despite the dip, Balfour Beatty characterized the segment\u2019s performance as \u201cconsistent,\u201d with U.S. profits holding steady at 21 million pounds.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Balfour Beatty Group Chief Executive Leo Quinn pinned difficulties in its U.S. segment on the tech and office sectors.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>He noted that the market in the Northwest, primarily funded by tech industry giants like Meta, Amazon and Microsoft, was on the decline. 2023 has been a tough year for big tech, as the largest corporations have <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/contech-firms-feel-sting-tech-industry-woes-layoffs\/688729\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>cut tens of thousands of jobs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> amid a harsh economic climate.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Further south, developer decisions to put office projects on hold in Texas have been influenced by interest rates, Quinn said. However, he noted that it hasn\u2019t stopped the contractor from picking up potential future work despite the current slowdown.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cInterestingly, in Texas, the work is piling up,\u201d Quinn said. \u201cWe\u2019ve got our largest order book of awarded but not contracted [work]. The challenge is, until the developers get certainty, they won\u2019t move onto contract. We\u2019ve got a lot of pent-up demand here.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Despite the struggles, Quinn pointed to sectors that he believed were demonstrating growth across the country.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>He said the company sees strong growth in California through school projects, federal projects in the Washington, D.C., metro area and the demand of Disney and Universal Studios in Florida for hotels and leisure projects.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe U.S. is a solid performer, and we\u2019re waiting for the dam to break so that we can be more optimistic about the outlook for the next year and the year after,\u201d Quinn said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In the U.S., the company has recently announced it:\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/balfour-beatty-profits-dip-weak-us-office-tech-sectors-construction\/691224\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Dive Brief: Balfour Beatty\u2019s pre-tax profit dipped to 82 million pounds ($104.7 million) for the first half of 2023, &#8230; <a title=\"Balfour Beatty profits dip on weak US office, tech sectors\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/balfour-beatty-profits-dip-on-weak-us-office-tech-sectors\/\" aria-label=\"Read more about Balfour Beatty profits dip on weak US office, tech sectors\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":20919,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-20918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/20918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=20918"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/20918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media\/20919"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=20918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=20918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=20918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}