Exhibit 99.1
GRANITE CONSTRUCTION REAFFIRMS POSITIVE OUTLOOK;
PROVIDES UPDATE ON FULL YEAR 2006 EXPECTATIONS
WATSONVILLE, Calif., Sept. 20 /PRNewswire-FirstCall/ -- Granite
Construction Incorporated (NYSE: GVA) today reaffirmed its positive outlook for
the Company's financial performance in 2006. The Company reported that demand
for its construction services and aggregate materials continues to be very
strong in the West. The Branch Division is experiencing healthy public sector
bidding opportunities, as well as private non-residential commercial and
industrial work. The Company continues to expect the Branch Division to deliver
2006 operating income that exceeds the record performance set in 2005.
As an update to its previously stated guidance on July 26, 2006, the
Company no longer expects operating results for the Heavy Construction Division
to reach break-even this year. The division's year-end results will be dependent
on several projects reaching the threshold for profit recognition, the amount of
revenue received from outstanding claims and change orders, as well as the
operating performance for the remainder of the year.
Given the Branch Division's positive outlook and record results through the
first half of the year, the Company continues to expect total company earnings
results in 2006 to exceed 2005.
Granite will announce its third quarter 2006 results after the close of
market on Wednesday, October 25, 2006. A conference call will be held at 11:00
am EDT on Thursday, October 26, 2006.
Granite, a member of the S&P 400 Midcap Index, the Domini 400 Social Index
and the Russell 2000, is one of the nation's largest diversified heavy civil
contractors and construction materials producers. Granite Construction serves
public and private sector clients through its offices nationwide. For more
information about the company, please visit their website at
www.graniteconstruction.com.
This press release contains forward-looking statements, such as statements
related to the existence of bidding opportunities and economic conditions on the
Company's future results. Additionally, forward-looking statements include
statements that can be identified by the use of forward-looking terminology such
as "believes," "expects," "appears," "may," "will," "should," "look for," or
"anticipates," or the negative thereof or comparable terminology, or by
discussions of strategy. All such forward-looking statements are subject to
risks and uncertainties that could cause actual results of operations and
financial condition and other events to differ materially from those expressed
or implied in such forward-looking statements. Specific risk factors include,
without limitation, changes in the composition of applicable federal and state
legislation appropriation committees; federal and state appropriation changes
for infrastructure spending; the general state of the economy; job productivity;
accuracy of project estimates; weather conditions; competition and pricing
pressures; and state referendums and initiatives. You should not place undue
reliance on these forward-looking statements, which speak only as of the date of
this news release. Granite undertakes no obligation to revise or update publicly
any forward-looking statements to conform the statement to actual results or
changes in the Company's expectations.
For further information regarding risks and uncertainties associated with
Granite's business, please refer to the "Management's Discussion and Analysis of
Financial Condition and Results of Operation" and "Quantitative and Qualitative
Disclosures About Market Risk" sections of Granite's SEC filings, including, but
not limited to, its annual report on Form 10-K and quarterly reports on Form
10-Q, copies of which may be obtained by contacting Granite's investor relations
department at (831) 724-1011 or at Granite's website at
www.graniteconstruction.com.
SOURCE Granite Construction Incorporated
-0- 09/20/2006
/CONTACT: Jacque Underdown of Granite Construction Incorporated,
+1-831-761-4741, or Jacque.Underdown@gcinc.com/
/Web site: http://www.graniteconstruction.com /