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

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

Thanks George.

Ironically 2 of my best trades this year have been HFD and MTC - both (to me) seemed no brainers and both closed too soon!

Contract Win

Balfour Beatty, the global infrastructure group, is pleased to announce that it has been named as best value bidder, as part of a design-build joint venture with Fluor Corporation, to undertake the upgrades and replacements of river crossings in Dallas, Texas. The Texas Department of Transportation's (TxDOT) estimate for the design, construction, utilities and right of way for the project is approximately US$798 (£502) million.

Contract Win

Balfour Beatty, the international infrastructure group, has been awarded a long-term contract to manage and maintain major trunk roads in the South West of Scotland. The contract was awarded by the Scottish Ministers and has a total potential value in excess of £125 million.

Contract Win

Balfour Beatty, the global infrastructure Group, has been selected as preferred bidder to maintain Suffolk's highways in a contract worth £200 million over five years, with the possibility of an extension to 10 years. The decision for awarding the contract remains subject to formal legal procedures.

If approved, it will mean that Balfour Beatty Living Places will be responsible for the design and implementation of highway maintenance and improvement works, winter gritting, street lighting, traffic signals and bridge works throughout the county.

Finally starting to look up.