Balfour Beatty says set for strong 2008

Source: Reuters

Date :04/11/2008 12:28:14

Construction and engineering firm Balfour Beatty said Tuesday that trading since June had remained strong thanks to its involvement in infrastructure projects.

"The confirmed order book has increased further in the period, with the group's major markets continuing to provide significant new business opportunity," the company said in a trading statement for the period June 29 to November 3.

Both trading and cash generation had "continued to be strong" and were in line with previously announced expectations, the company said.

"Balfour Beatty's balance sheet and general financial position remains strong, with average net cash in the period exceeding 200 million pounds," it added. "We continue to expect 2008 to be a year of strong progress for the group."

In the building sector Balfour Beatty said it had seen good progress despite some signs of slower spending by developers.

U.S. construction and construction management company Barnhart, acquired by Balfour Beatty in June, was also performing in line with expectations and had an order intake of over $200 million (127 million pounds) since the acquisition.

"In engineering, the first half-year's strong progress has continued with particularly good performances in Balfour Beatty Utilities and UK civil engineering," the company said.

In Dubai the company said its share of 2008 revenues from an engineering joint venture would exceed 350 million pounds.

Balfour Beatty described its performance in the rail sector as steady and pointed to "major new opportunities" in Britain, the U.S. and Southeast Asia.

The public-private partnership side of the business continued to perform satisfactorily, and those at preferred bidder stage remained on track, though the global financial crisis was expected to affect their timing.

(Reporting by Paul Hoskins, editing by Will Waterman)

LONDON (Reuters)