Tutor Perini Corp. reported that its 2015 results would fall below expectations and that a big part is due to a loss on the contractor's work at the Hudson Yards development in New York City.
The Sylmar, Calif.-based company announced that its 2015 revenue will be $5 billion with diluted earnings per share of 85 cents to 90 cents. Previously, the company had estimated its revenue for the year to come in as high as $5.5 billion and earnings per share in the range of $1.90 to $2.10.
Tutor Perini blamed the disappointing results on project-related charges at its wholly owned subsidiary acquired in 2011, Five Star Electric Corp., and a lawsuit-related court decision that occurred in the third quarter. The contractor said it "has terminated or replaced key management personnel within that business unit," not identifying the individuals affected.
Tutor Perini also attributed the 2015 losses to delays on its work with the stuck tunnel boring machine, Bertha, on the Alaska Way Viaduct in Seattle.
Less is known about another problem project that contributed to the company's underachieving in 2015: "the major loss on the Tower C concrete superstructure project in New York," the first major building at the Hudson Yards on Manhattan's west side.
The company expects to report its 2015 results on February 24.
The company first reported the problem on the 52-story multiuse tower last August. The loss amounted to an $8.7-million reduction in net income.
It was "the first major loss for Tutor Perini on a fixed-price contract in the past 20 years," the company stated at the time.
Developer Related Oxford Hudson Yards surprised many when it hired Tutor Perini for the project in 2012.
Tutor Perini said in a statement that new projects promised a much-improved 2016.