Engineering news
Balfour Beatty has reported a full-year loss of £59 million, down from a £131 million profit a year earlier.
However, without the sale of Balfour's US construction business Parsons Brinckerhoff losses for 2014 would have amounted to £304 million. Balfour sold the business for £753 million in October last year, making a profit of £234 million.
Balfour Beatty posted revenues of £8.44 billion for 2014, compared with £8.5 billion a year earlier.
The group issued a series of profit warnings in 2014 and former chief executive Andrew McNaughton departed in May, with his successor Leo Quinn starting two months ago.
The new boss said: "Balfour Beatty's underlying performance has been declining since 2010, with the sharpest and most noticeable decline occurring over the last 12 months."
The performance of the UK construction business was the main drag on group earnings, as it saw an underlying loss of £229 million.
Its bottom line figure was dragged further into the red by losses on certain "legacy" engineering services contracts, as well as from the German rail business it is in the process of selling.
It was also weighed down for 2014 by the costs of an aborted proposed merger with Carillion, as well as restructuring and reorganisation charges.
Balfour said this was impacted by "significant operational issues" in engineering services and in its London and South West regional businesses, while the Scottish and North and Midlands areas performed well.
The group's UK rail construction business was also in the red after being hit by "operational issues" on some projects.
Quinn said: "Over the next two years we should work through the severe legacy of 'problem' construction projects.
"However, in tackling the cultural change required to ensure these issues are behind us, we face major short-term challenges."
Profits from the US grew though margins were flat but the Middle East division saw a loss after write-downs on "two significant projects".
The group has already cancelled share buyback plans and changed pension fund payments as it seeks to shore up its balance sheet.
Quinn added: "We have also decided not to recommend a final dividend this year, but expect to reinstate the dividend at an appropriate level by March 2016."