Sterling Affiliate Called Low Bidder

Zacks

Road & Highway Builders, an affiliate of Sterling Construction Company, Inc. (STRL), has declared a low bidder on a Nevada Department of Transportation (:NDOT) project. The company bid around $20 million for the NDOT Contract Number 3550.

The NDOT contract includes reconstruction of State Highways 225, 535, and 227 in Nevada. Sterling will build utility systems, earthwork, HMAC paving, polyester concrete bridge deck overlay and concrete structures. The construction is expected to commence in the spring of 2014 and will be completed by the end of the year.

Recently, another affiliate of Sterling – Myers & Sons Construction, L.P. – was declared a low bidder on the California Department of Transportation (CalTrans) project. The company bid around $29.7 million for the U.S. 50/Silva Valley project. Sterling will build three box girder bridges and one flat slab bridge under this project.

Sterling, which belongs to the building and heavy construction industry along with Chicago Bridge & Iron Company N.V. (CBI) and China Railway Construction Corporation Limited (CWYCY), recorded loss in second-quarter 2013, due to the negative impact of three legacy projects, where costs unexpectedly exceeded initial project estimates.

Bookings were $154 million in the reported quarter, up 133% year over year. Sterling is expected to be benefited by continued favorable order bookings and margins associated with new projects.

Houston, Tex.-based Sterling is a leading heavy civil construction company engaged in the building and reconstruction of transportation and water infrastructure projects in its home state, Utah, Nevada, Arizona, California and other states. Its transportation infrastructure projects include highways, roads, bridges and light rail. Its water infrastructure projects constitute water, wastewater and storm drainage systems.

Sterling currently retains a Zacks Rank #3 (Hold). Hopewell Highway Infrastructure Limited (HHILY), which operates in the same industry, holds a Zacks Rank #2 (Buy).
 

Read the Full Research Report on CBIRead the Full Research Report on HHILYRead the Full Research Report on CWYCYRead the Full Research Report on STRLZacks Investment Research

Rates

View Comments (0)