07.03.13
Balfour Beatty sells European rail arm
Balfour Beatty is to sell its mainland European rail business, following a fall in profits.
The company reported a 70% fall in pre-tax profits to £75m. The UK construction industry remains tough and construction revenue is expected to fall by 20% this year.
Group-wide, underlying profits at Balfour Beatty remain resilient, down 7% at £310m on turnover flat at £10.9bn, before restructuring costs of £61m and £100m in goodwill write-downs on its European rail business.
A spokesperson said: “In Mainland Europe, we essentially operate only in rail. Therefore, we will be divesting of all of our rail businesses through a process that ensures that the businesses and their customers continue to receive full support.
“As a first step in this direction, we have sold the Spanish business to its management.”
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