Construction leads on profit warnings
The second quarter of 2012 saw the highest number of construction industry profits warnings since the credit crisis began in 2008.
Some 41% of FTSE Construction & Materials companies have issued profits warnings in the year to date.
Most FTSE sectors saw a year-on-year drop in profit warnings in the April-June 2012 period, but construction was an exception.
The impact of contracting credit, falling confidence, fiscal tightening and the PFI hiatus have been building on the sector for some time, said accountancy firm Ernst & Young, which carried out the analysis.
Keith McGregor, head of restructuring for Europe, Middle East and Africa, said, “The FTSE Construction & Materials sector is experiencing its toughest period since the financial crisis. Improving order levels and infrastructure opportunities offer hope. However, the benefit of rising new order levels won’t be felt until 2013 and there is still uncertainty surrounding the timing of public spending, while financing uncertainties limit private sector expansion.”
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This article was published on 09/07/2012 (last updated on 10/07/2012).