Balfour Beatty Boss Quits On Profit Warning
The boss of infrastructure firm Balfour Beatty has resigned amid a profit warning that centred on the performance of its UK construction business.
Andrew McNaughton quit with immediate effect after a £30m shortfall was discovered in the UK operation - blamed on significant operational issues in its mechanical and electrical engineering businesses.
The statement - brought forward from a planned trading statement due next week - also cited delays in some of its major building projects.
As a result of the problems, the company said it now expected overall pre-tax profits for 2014 to be in the range of £145m to £160m.
The developments sparked a 16% fall in its share price in early trading on Tuesday.
Balfour, which operates in over 80 countries employing over 40,000 people, said it had conducted a strategic review and was looking into the possible sale of its engineering consultancy business, Parsons Brinckerhoff.
Steve Marshall, Balfour Beatty's non-executive chairman, has taken over as Group executive chairman until a successor to Mr McNaughton is appointed.
Mr Marshall said: "Andrew has served the Group for the last 17 years in a wide variety of roles. I would like to thank Andrew personally and on behalf of the Board for his major contribution.
"We wish him well for the future."