Half-year earnings plummet despite healthy growth offshore, the poor state of the local construction sector dragging down the balance sheet

Joint venture contractors Aveng, Grinaker-LTA and WBHO recently took top honours in the annual Steel Awards hosted by the Southern African Institute of Steel Construction

Construction companies hoping to cash in on government's R1-trillion infrastructure spending spree have been left sorely disappointed

Aveng advised that it anticipates that its earnings per share and headline earnings per share for the year ended June 2011 will be 30% to 40% lower than 480.3c and 483.6c of corresponding period.

While stocks in the heavy construction industry were set to continue to hold their value in the short term, some analysts have warned of patchy growth in the sector over the medium term while some are more bullish and will be looking to increase exposure for a sector they deem to be "underweight"

The Competition Tribunal has confirmed the settlement agreement between the Competition Commission and Aveng after one of its subsidiaries was found guilty of cartel activity.

Infrastructure development company Aveng has pointed to a continued 'tough operating environment' in the local construction sector.

Fitch Ratings has affirmed South African Aveng Limited's National Long-term rating at 'A(zaf)'.

Aveng Group says that it has won a mining management contract with Kenmare in Mozambique worth $$200m.

Aveng, the largest construction group in SA, has warned that prevailing tough trading conditions were expected to continue into 2012.