UPDATE 1-Granite Construction to cut 13 pct of jobs, take charge

Mon Oct 25, 2010 5:43pm EDT

* To record pre-tax charge of about $10-$12 mln in Q4

* To curb cost structure by about $20-$24 mln annually

Oct 25 (Reuters) - Civil contractor and construction materials producer Granite Construction Inc (GVA.N) said it plans to cut about 227 jobs, or 13 percent of its salaried workforce, as part of a cost-cutting plan to return to long-term profitable growth.

Granite Construction said it is also reviewing select underperforming assets and investments for closure or divestiture.

The company, which has posted losses in the last two quarters, expects to record a pretax charge of about $10-$12 million in the fourth quarter related to severance and benefits-related costs.

Granite Construction expects to save about $20-$24 million annually.

For the second quarter, the company had reported a loss of $6.7 million, or 18 cents a share, partly hurt by lower margins and a tax-rate adjustment. [ID:nSGE66P0GK]

Shares of the Watsonville, California-based company were trading down 1 percent at $24.29 after the bell. The shares, which have risen 6 percent since the company reported second-quarter results in August, closed at $24.61 Monday on the New York Stock Exchange. (Reporting by Fareha Khan in Bangalore; Editing by Anne Pallivathuckal)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.