Engineering and construction firm Balfour Beatty has reported a 36 per cent rise in half-year pre-tax profits, with the integration of its new US unit helping to boost the company's order book.
In a statement the company revealed that its pre-tax profit for the six months ending June 30th reached £76 million, up from £56 million in the previous year.
Balfour Beatty bosses said the profit rise reflected "strong performances" across all sectors, including a first quarter of contributions from Balfour Beatty Construction US which performed in line with expectations.
The company also revealed that its order book grew to a "record" £10.6 billion over the first half of 2006, up by 16 per cent on the end of last year, largely due to the consolidation of the order book of its US unit.
Balfour Beatty Construction US, formerly known as Centex Construction, was bought by Balfour Beatty in a $377 million (£190 million) deal in March and its parent company revealed today that its order book for the building sector had particularly benefited from the acquisition.
Of the £5.1 billion worth of business now on the company's order book for the building sector, £1.2 billion is attributed to the takeover and further growth is expected during the second half of the year.
Balfour Beatty stressed that it had also "substantially enhanced" future earnings growth through a number of smaller acquisitions, including its £60 million purchase of Exeter international airport in January.
The company also reported a strong performance in the rail sector, with profit from operations before exceptional items climbing to £13 million over the first-half, up 18 per cent on the same period a year earlier. Balfour Beatty said the renewal of overground contracts with Network Rail and similar "high levels of activity" in regard to sub-surface trackwork on London's underground had helped boost performance.
Commenting on the results Balfour Beatty chairman Sir David John and chief executive Ian Tyler said: "It is pleasing to report a first half year of particularly strong profit and earnings growth, coupled with a further significant strengthening of our cash position and growth in our order book."