Shares in the UK infrastructure giant Balfour Beatty fell by 20 percent this morning, as the company issued its third profit warning of the year. The drop follows news that the company is expecting a GBP 75m shortfall in its construction division. Company chairman Steve Marshall will step down once a replacement can be found. Marshall was at the helm since May, when Andrew McNaughton left following an earlier profit warning.
“This latest trading statement is extremely disappointing. The board has appointed KPMG to undertake a thorough review across the contract portfolio within construction services UK. There has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable. Restoring consistency will take time and it has our full focus,” Marshall was quoted as saying by the UK Guardian.
KPMG has been appointed to review Balfour Beatty’s contract portfolio. An internal investigation last year uncovered overruns and overspends, according to news reports. The company is involved in various motorway and power station project across the UK.
