Myers & Sons Construction, L.P., an affiliate of Sterling Construction Company, Inc. (STRL), has been declared a low bidder on the California Department of Transportation (CalTrans) project. The company bid around $28.5 million for Route 405/101 to Route 405/5 CalTrans project. The project is expected to be completed in two years.
The CalTrans project includes the replacement of 440,000 square feet of failing concrete, 18,300 cubic yards of a rapid strength lean concrete base and 12,300 cubic yards of precast prestressed concrete panels along with Route 405 in Los Angeles.
Sterling, which belongs to the building and heavy construction industry along with Orion Marine Group Inc. (ORN), Primoris Services Corporation (PRIM) and Chicago Bridge & Iron (CBI), posted an adjusted loss of 28 cents per share in first quarter 2013 compared with the prior-year loss of 46 cents a share. The loss per share was wider than the Zacks Consensus Estimate of a loss per share of 10 cents.
Sterling, however, booked new contracts aggregating about $148 million during the first quarter. The company also recorded a backlog of $693 million as of Mar 31, 2013, compared with $656 million as of Dec 31, 2012.
Sterling maintains its full year 2013 organic revenue growth guidance due to concerns regarding government funding. The company expects improvement in bookings, both in terms of dollars and margins. Gross margin for the year is expected to expand based on the restart of the operationally challenged projects.
Houston, Tex.-based Sterling Construction is a leading heavy civil construction company engaged in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nev., Ari., Calif. and other states. Its transportation infrastructure projects include highways, roads, bridges and light rail and its water infrastructure projects constitute water, wastewater and storm drainage systems.
Sterling currently retains a Zacks Rank #3 (Hold).
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