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Builders issue profit warnings

Published:  11 July, 2012

LONDON: Britains' big builders issued their highest number of profit warnings since 2008 during the second quarter of this year.

Seven construction companies in the FTSE issued profit warnings bucking the positive trend across all sectors. The alerts means 41% of FTSE companies in the construction sector have issued warnings in the year so far, according to the latest figures from Ernst & Young.

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.”