Anybody trading in these shares? I just bought some @ 204.72

Contract Win

Balfour Beatty, the global infrastructure group, is on track to realise its strategic goal to capture a 10% share in its area of the US water and wastewater market by 2020 after winning a £80 (US$130) million contract with the Patapsco Wastewater Treatment Plant in Baltimore County, Maryland. Balfour Beatty has also delivered on the strategic milestone of entering the Southwest water and wastewater market by winning its first job in Texas - the £45 (US$74) million, three year contract at the Galveston Main Water and Wastewater Treatment Plant.

Shares in infrastructure and construction firm Balfour Beatty had dropped back a little recently, but they're powering back up again, briefly hitting a new 52-week high of 317.8p today.

The whole sector has seen a strong recovery over the past year, and Balfour Beatty is still looking pretty cheap based on full-year forecasts. There's a 5% dividend yield expected from the shares which trade on a forward price to earnings ratio of less than 9

Interim Management Statement

Trading

Our Professional Services, Support Services and Infrastructure Investments businesses are demonstrating resilience and strength in a challenging economic environment, performing well and in line with our expectations.
In Construction Services, difficult trading conditions have persisted in the period in our two major markets. US construction markets remain depressed, and the performance of our UK construction business is weaker than anticipated. Structural problems in European Rail markets added to the challenges. We have made good progress in implementing both phases of our cost efficiency programme and that has been helpful in offsetting some of the weakness.

As a result and based on the outturn for the third quarter, profitability in 2012 will be slightly lower than expected at the time of the half-year results although this will be somewhat offset by a slightly lower effective tax rate. Furthermore, the conditions that have led to a recent decline in the order book point to 2013 being a difficult year for Construction Services.

Operating performance

Order book

After a small decrease in the first half in the Construction Services order book, we saw a more significant decline in the third quarter. As a result, even though order intake in our other businesses was stable, the Group order book closed at £14.4 billion at the end of September, down from £15.0 billion at the end of June.

Getting hammered so far, down to around 256p, re-entry point shouldn't be too much lower from here I wouldn't have thought, any ideas for a buying level.
2517

To me, 240 to 260 looks like a buying level as it is an 'event' area where a lot of movement has occurred in the last 3 years or so. Am waiting to see if the daily price gets back to 250p for a daily double bottom. I hope we haven't missed the 250 buying price in that spike down this morning. Also I think it goes ex div next week for 5-6p. H

We've had the divi. Xd was on October 10.

Thanks Kevin, got my months mixed up, thought we were still in October! H

Balfour Beatty reviewing business after profit warning

LONDON | Thu Nov 8, 2012 12:54pm GMT

(Reuters) - British infrastructure group Balfour Beatty Plc (BALF.L) is studying whether to close parts of its operations after issuing a profit warning, prompting its share price to dive 16 percent.

"We are definitely in a world ... where we are having to look at desisting from certain areas of the market," Chief Executive Ian Tyler told analysts in a call.

The construction sector accounts for around 30 percent of Balfour's business. Weakness there caused by public sector cuts and falling business confidence has squeezed margins across the industry since the 2008 property bust in the United States and Britain.

The company said on Thursday that it would miss its profit guidance for 2012.

Shares in Balfour Beatty fell 16.4 percent by 1000 GMT, wiping out the 15.6 percent rise so far in 2012.

"Unfortunately for Balfour there aren't the big contracts which historically they have used to differentiate themselves to get a bit of margin," said Andrew Gibb at Investec, who has a "sell" recommendation on the stock.

"They're having to go further down the food chain in terms of looking for work," he added.

The tough environment also afflicted rival firm Morgan Sindall, which on Wednesday issued a profit warning and announced the departure of Chief Executive Paul Smith.

RAIL UNDER REVIEW

Balfour Beatty said it was specifically reviewing its rail construction operations in light of critically low activity levels in Italy and Spain as well as low margins in the UK and Germany.

It said that these factors, which it sees as structural changes, would cost the group 10 million pounds in profit in 2012.

When asked about the possibility of pulling out of Italy and Spain altogether, Deputy Chief Executive Andrew McNaughton told Reuters this was a consideration.

"What we're trying to figure through is what parts we can be viable in and which parts are not viable for our shareholders," he added.

McNaughton said the group aims to publish results of the review in the early part of next year.

Tyler said he believes there will be a new public-private partnership (PPP) initiative put in place in the UK to help the industry, but added that more clarity was needed in areas like energy market reform.

"The government themselves recognise that there is a gap between their aspirations in infrastructure and what they have delivered," he said.

Tyler added that new major public sector contracts in Britain won't materialise until 2014/2015.

"2013 is going to be tough if not tougher than 2012. People are forecasting some sort modicum of improvement in 2014 but that is dependent on political will," said Gibb at Investec.

(Editing by Stephen Nisbet)

Thanks for that Skinny. Even worse than I thought.

Deutsche Bank reiterates it's Hold TP reduced from 323p to 260p

UBS retains it's Neutral TP reduced from 295p to 260p

Profit warnings come in 3's don't they? If that's the case then be careful with this one.

I am tempted to buy, but will wait for a while.

Numis Buy Upgrade TP 297p

Looks like 235/6 was the time to get back in.
2517

If you ever got out!

Agree 2517, lets hope we can get back in below 240p on a retracement! H

Would be good sutherlh1, I've done quite well from BBY in the past, and I have been watching them since the profit warning, pays a good divi too. Also been watching MRW and think around 245p-250p as an entry point.
2517

I bought back in @236.5 - albeit fairly small and may add on momentum - as you say George, still a good yield (if held) at this level.

My gut feeling was that around that level BBY was a decent buy, well done skinny, BTW I see HFD got an upgrade today with a TP of 400p.
Also have to say I enjoy your pics on the various threads.
2517