Balfour Beatty Plc, Britain’s biggest builder, said first-half earnings figures will be clipped by newly discovered issues with mismanaged construction contracts. The stock fell almost 10%, the most in nine months.
Pretax profit for the six months through June 26 was 120 million pounds ($185 million) to 150 million pounds lower than previously estimated, London-based Balfour said Thursday. Two-thirds of the shortfall relates to the U.K. market and the rest to operations in the U.S. and Middle East.
Balfour Beatty has been restructuring under new Chief Executive Officer Leo Quinn after poorly managed and undercharged contracts weighed on earnings and drove down its share price.
