April 22, 2010 / 10:47 PM / 8 years ago

UPDATE 1-Granite Construction sees Q1 loss; shrs fall

* Sees Q1 rev down 35 pct from year ago

* Sees Q1 net loss of $40 mln to $45 mln

* Cites inclemental weather for rev decline

* Shares down more than 6 pct after the bell

April 23 (Reuters) - Civil contractor and construction materials producer Granite Construction Inc (GVA.N) forecast a huge first-quarter loss on a 35 percent drop in revenue, citing unfavorable weather conditions, sending its shares down by more than 6 percent in after market trading.

The company expects quarterly net loss of between $40 million to $45 million, on revenue of about $220 million.

Analysts on average, were expecting Granite Construction to post a loss of 16 cents a share, on revenue of $301.7 million, according to Thomson Reuters I/B/E/S.

    “This decline was due in part to unusually wet weather throughout the West and record-breaking snowfall in the East,” Chief Executive William Dorey said in a statement.

    Citing a competitive market environment, the company expects margins on its smaller projects to decline for the rest of 2010.

    Non-residential construction in the U.S. has yet to see an uptick, and has been struggling under the twin pressures of tepid demand and frozen credit markets.

    Shares of the Watsonville, California-based company were down 6 percent at $31.98 in trading after the bell. They had closed at $34.06 Thursday on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Unnikrishnan Nair)

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