Construction equipment vendor Deere & Co. posted a second-quarter net income of $547.5 million, jumping 16%, on sales of $7.1 billion, up 6%, over the same period last year. Construction and forestry machine sales rose 52% for the quarter and earnings shifted into the black due to increased shipments, favorable currency exchange rates and price increases of about 2%. Deere’s construction and forestry division, bouncing back from last year’s anemic lows, booked an operating profit of $36 million for the quarter, compared with a quarterly loss last year of $75 million. The Moline, Ill.-based company upped its earnings forecast for
With deadlines for major construction projects for London’s 2012 Olympics looming, the United Kingdom’s new coalition government is pledging that the Olympics will not be given special protection from public spending cuts promised by the new government, elected on May 6. Secretary of state for culture, Olympics, media and sport, Jeremy Hunt, says savings in the Games’ $13.4-billion construction budget will be sought.
The first quarter was tough for two leading U.S. construction aggregates producers, with high diesel fuel costs, record bad weather and slow-moving stimulus work combining to hammer revenue and profits for Vulcan Materials Co., Birmingham, Ala., and Martin Marietta Materials Inc., Raleigh, N.C. But both saw some improvement going into the second quarter and predict more stimulus demand by year’s end. Photo: Vulcan Materials Co. Aggregates could pick up in demand this year as stimulus-funded highway jobs progress. For the first quarter ended on March 31, Vulcan, the largest U.S. aggregates maker, reported on May 3 a $39-million loss—$6 million
Some industry groups are concerned the Environmental Protection Agency’s interpretation of the fiscal 2010 law appropriating funds for the drinking- and clean-water State Revolving Loan Fund programs could jeopardize attempts to pass a long-awaited five-year SRF reauthorization bill in the Senate. The Senate Environment and Public Works Committee approved a five-year reauthorization bill in May 2009. The bill, known as the Water Infrastructure Financing Act of 2009, would authorize $20 billion through 2014 for the clean-water SRF and $15 billion for the drinking-water SRF. In March 2009, the House authorized $13.8 billion for the clean-water SRF over five years. But
The U.S. Dept. of Transportation said on May 7 that it is proposing changes in its requirements for disadvantaged-business-enterprise firms (DBEs), which include small companies owned by women and minorities. The last highway-transit authorization, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: a Legacy for Users and other statutes, set a goal of having at least 10% of the federal funds for highways, transit and airport construction go to small businesses controlled by those who are "socially and economically disadvantaged." The proposed rule, to be published in the Federal Register on May 10, would increase the ceiling on a DBE
Federal contracting officers will no longer be required to withhold 10% of fees for architectural and engineering services, following a four-year effort of industry lobbying. Published in March by the Federal Acquisition Regulation Council, the new rule says retainage is discretionary. If contracting officers choose to require retainage, it can be set below 10%. “It shocked me … I couldn’t let it go unchallenged.” — Paul Renker, Architect The new rule also clarifies that “any amounts retained should not be held over beyond the satisfactory completion” of the contract. Previously, retainage could be held until completion. Small businesses applaud the
Used construction-equipment values are creeping up after bottoming out last summer, a sign that credit is looser and fewer firms are ditching their fleets. Values rose for the fifth month straight in February, posting a 1.9% monthly gain and a 6.2% six-month increase, according to Beverly Hills, Calif.-based appraiser Rouse Asset Services. Monthly gains of 13.1% for straight-boom lifts, 7.2% for articulating-boom lifts, 3.5% for telehandlers and others propped up values, while prices declined 1.4% for dozers and 0.8% for compactors. However, values still are 26.6% below April 2007’s market peak. Source: Rouse Value Index. Average Orderly Liquidation Value for
Some alternative-energy developers that could gain millions in federal energy loan guarantees under the stimulus program may have shaky finances, according to financial filings and outside reviews. However, executives defend their start-ups’ strength and potential, while a U.S. Energy Dept. official is confident the feds’ investment will be repaid. Solar energy developer Solyndra, Fremont, Calif., which received a $535-million DOE guarantee last year, has not showed a profit since its 2005 founding and was reviewed negatively last month by accountant Pricewaterhouse Coopers, which questioned its future. Tyngsboro, Mass.-based Beacon Power, which has a conditional $43-million guarantee to build a 20-MW
Construction’s unemployment rate declined for the first time in seven months, as the industry gained 15,000 jobs in March, the Bureau of Labor Statistics said April 2. This uptick is the industry’s first monthly increase in jobs, seasonally adjusted, since June 2007. But the 24.9% jobless rate, while down from February’s 27.1%, is still above the 21.1% rate in March 2009. Construction economists praised the latest number but were wary about whether it signals a longer-term jobs trend.
In roughly a year on the market, federally subsidized Build America Bonds for public-works projects have soared to $90 billion in volume and saved localities more than $12 billion in interest costs, the Treasury Dept. says. In a report released April 2, Treasury says that the Build America Bonds (BABs), created under last year's American Recovery and Reinvestment Act, have increased in volume to $90 billion as of March 31. That equals more than 20% of the market for new municipal bonds. Critics have charged that investment firms' underwriting fees for issuing the new bonds have been too high. Treasury
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