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Tutor Perini Wins $77M Contract

Zacks Equity Research

Tutor Perini Corporation (TPC) has secured construction work contracts worth $77 million. The deal covers three new projects in Guam.

Black Construction Corporation (BCC), a unit of Tutor Perini, was declared the low bidder for the Ordot Dump Closure Construction and Dero Road Sewer Improvements project with a bid of around $40.9 million. This project involves the maximum volume of work.

The project will undertake construction of facilities both temporary and permanent, for excavation, grading, drainage and erosion controls. The construction is slated to begin in first-quarter 2014 and wrap up by Jul 2015.

The second project, awarded by the U.S. Naval Facilities Engineering Command, has been valued at $23.8 million. The project involves upgrade of 60 existing housing units at Lockwood Terrace on Naval Base Guam. The work includes expansion of the current living spaces and reorganization of interior living areas to meet current Navy standards. This work is scheduled to begin in Apr 2014 and will be completed by Sep 2015.

Finally, a $12.7 million contract was awarded to BCC by the Lotte Duty Free Retail for architectural finishing work inside the Guam International Airport. Under this project, various public retail and boutique areas will get architectural, mechanical, electrical, fire protection, renovations and finish work. This work is slated to commence in Oct and be over in Mar 2014.

Tutor Perini expects to book the value of the Ordot Dump Closure Construction and Guam Airport contract into the backlog for the fourth quarter of 2013. The contract awarded by the U.S. Navy will be included in the backlog for the third quarter of 2013.

Sylmar, Calif.-based Tutor Perini Corporation is a foremost civil and building construction company, offering diversified general contracting and design-build services to private clients and public agencies globally.

Tutor Perini currently retains a Zacks Rank #4 (Sell). Among other stocks in the same industry, Empresas ICA, S.A.B. de C.V. (ICA), Great Lakes Dredge & Dock Corporation (GLDD) and Hopewell Highway Infrastructure Limited (HHILY) are favorable investment options. All these hold a Zacks Rank #2 (Buy).

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