Granite Executes Contract in Texas
Granite Construction Incorporated (GVA) declared that AGL Constructors, a joint venture between Archer Western Contractors, LLC, Granite Construction Company and Lane Construction Corporation received an executed contract from the Texas Department of Transportation (TxDOT).
AGL also received a notice from TxDOT to proceed on IH-35E Managed Lanes Project in Texas. AGL was selected for the project in Dec 2012 and is expected to take around three-and-a-half years to complete the work.
The project includes design and reconstruction of 28 miles between IH-635 and US 380 lying between Dallas and Denton Counties which is one of Texas’ 100 most congested roadways. The project will add two reversible managed lanes and one additional general purpose lane in each direction. The joint venture is also required to build a new southbound bridge at Lake Lewisville that will offer more reliability to commuters during major incidents.
Granite, which belongs to the building and heavy construction industry along with Primoris Services Corporation (PRIM), Orion Marine Group, Inc. (ORN) and Chicago Bridge & Iron Company N.V. (CBI), holds a 35% share of the project. It expects to book about $296 million into the backlog for the second quarter of 2013 related to its share of the project.
Recently, Granite received a design-build contract worth $130 million from the North Carolina Department of Transportation for the I-40/440 reconstruction project. Construction work for the project is scheduled to begin later this year and is expected to be complete in late 2016.
Granite anticipates at least double-digit gain in its top line for full-year 2013. The company also expects to generate strong cash flow, which will allow it to further implement strategic long-term plan. Also, recovery in the private construction market will help drive significant long-term operational and financial performance of Granite.
Watsonville, Calif.-based Granite is one of the largest infrastructure contractors and construction materials producers. Granite’s project teams represent some of the best in the industry serving owners in the transportation, power, federal, tunneling, underground and industrial, mining and water resources markets, which serve both public and private-sector clients.
Granite currently retains a short-term Zacks Rank #5 (Strong Sell).
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