Perini Corporation Q2 2008 Earnings Call Transcript

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2008-08-15 09:39:16.0

Tags: Perini Corp.

Question-and-Answer Session

Operator

(Operator instructions) Your first question will be from the line of Richard Paget of Morgan Joseph. Please proceed.

Richard PagetMorgan Joseph

Good afternoon, everyone.

Ronald Tutor

Hi, Richard.

Richard PagetMorgan Joseph

I wonder if you could talk about kind of the change here and how you guys have identified the – your targeted prospects over the next couple of quarters. It seems $11.1 billion was – I think you said that maybe $18 billion on the last call. I wondered what are one of the big changes there.

Ken Burk

Okay. Richard, this is Ken. Basically, what we have is we’ve seen the movement of some projects out a little bit as we discussed, out into perhaps into 2010. And we’ve also seen some movement inward, which includes some of the projects that we mentioned like Atlantic City MGM, which now become pending awards. So really what we suggest you do is you look at backlog, and then you look at pending awards. And then the last one is what we refer to as the targeted prospects. So I think you’ll see that it’s still – we’re still pretty much on target with the overall picture that we painted for the markets, with the notable exception that there could be some shift in the 2010.

Richard PagetMorgan Joseph

Okay. So it’s more of a timing issue than some of these projects going away.

Ken Burk

That is correct. We did mention – I think Ron was the one that mentioned that we haven’t seen any of our targeted projects or prospects cancel programs. What we have experienced have been some of our customers have indicated that they like to delay some of the starts – some of the preconstruction activity has slowed, but none of them that we have on our targeted list have indicated any reason or any indication of canceling the program.

Richard PagetMorgan Joseph

And then, with the Middle East, you talked about $4 billion of opportunities there. Is that part of that $11 billion or is that incremental?

Ken Burk

Well, again, it comes back to the timing of when it actually comes in. So that when you consider that some of the projects would go in to 2010, then you would bring in the Dubai in the shorter term. So it is included in the overall number.

 

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