Orion Group Holdings, Inc. (ORN) today announced preliminary results for the quarter ended September 30, 2018.
According to ORN, during the third quarter 2018, the company experienced unanticipated delays in commencing certain work due to customer schedules.
The company also experienced significant production delays in its concrete segment, primarily due to continuous rain throughout its market areas in Texas, particularly during September.
As a result, the timing of certain projects and opportunities has changed and ORN will see significant revenue shortfall in both segments, which will cause third quarter 2018 results to fall significantly below its expectations, anticipating a loss of ($0.20) – ($0.25) per share, reported the company.
Orion Group also added that the third quarter 2018 results are preliminary and therefore subject to the completion of customary quarterly closing and review procedures, including potentially performing an interim Goodwill test. Final third quarter results are expected to be announced on November 1, 2018.
ORN continued that although the anticipated results for the third quarter are disappointing, the company remains confident in its strategic plan, its long-term market outlook and its fundamental business drivers.
During the third quarter Orion Group bid on approximately $871 million worth of opportunities and was successful on approximately $210 million, representing an overall win rate of 24.1%.
“Despite delays during the third quarter, we remain confident with our long-term outlook due to our solid bid market and the second highest backlog in the company’s history,” said Mark Stauffer, Orion Group Holding’s President and Chief Executive Officer. “Overall, we continue to believe the company has a solid strategic plan and a strong outlook, with solid prospects for continued bottom line improvement in the future. During the first half of 2018, we outperformed due to solid project execution, continued strong demand, and favorable working conditions.”