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Tutor Perini Corporation

Tutor Perini Corporation (the "Company") is a leading civil and building construction company offering diversified general contracting and design/build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large complex projects on time and within budget while adhering to strict quality control measures.

We offer general contracting, pre-construction planning and comprehensive project management services, including the planning and scheduling of the manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including excavation, concrete forming and placement, steel erection, electrical and mechanical services, plumbing and HVAC. We are known for our major complex building project commitments as well as our capacity to perform large and complex transportation and heavy civil construction for government agencies and private clients throughout the world.

Third Quarter and Nine Month Results

Revenues from construction operations were $1.10 billion for the third quarter of 2012 compared to $1.17 billion for the third quarter of 2011, a decrease of 6%. Net income for the third quarter of 2012 was $42.6 million compared to $35.5 million for the third quarter of 2011. Diluted earnings per share were $0.88 for the third quarter of 2012 compared with $0.74 for the third quarter of 2011. Excluding a $16.8 million tax benefit related to the goodwill and intangible asset impairment charge which the Company recognized in the second quarter of 2012, net income and diluted earnings per share for the third quarter of 2012 were $25.8 million and $0.54, respectively. Net income and diluted earnings per share excluding the after-tax impairment charge and certain other discrete items are non-GAAP measures defined elsewhere in this press release and are reconciled to GAAP measures in the financial tables attached hereto

Revenues from construction operations decreased in the third quarter compared to the same quarter last year primarily due to the substantial completion of several large public works and hospitality and gaming projects in 2011. Excluding the $16.8 million tax benefit on the impairment charge, the decrease in net income in the third quarter was primarily due to the decline in volume discussed above as well as the favorable performance and successful close out of several specialty subcontracts in 2011. This decrease was partially offset by increases in the estimated recoveries on certain large hospitality and gaming, healthcare, and condominium projects based on changes in facts and circumstances surrounding those projects that occurred during the period.

Revenues from construction operations were $3.0 billion for the first nine months of 2012 compared to $2.6 billion for the first nine months of 2011, an increase of 15%. Including the after-tax impairment charge of $339.2 million, discrete tax expense adjustments of $3.6 million related to stock-based compensation and an after-tax loss on the sale of certain auction rate securities of $1.6 million, the Company recorded a net loss of $307.0 million, or $6.47 diluted loss per share, for the first nine months of 2012 compared to net income of $62.1 million, or $1.30 diluted earnings per share for the first nine months of 2011. Excluding the impairment charge and other discrete items noted above, net income and diluted earnings per share for the first nine months of 2012 were $37.4 million and $0.78, respectively.

Revenue from construction operations increased for the first nine months of 2012 primarily due to contributions from prior-year acquisitions, partially offset by the substantial completions of several large public works and hospitality and gaming projects in 2011. Excluding the discrete items discussed above, the decrease in net income for the first nine months of 2012 was due to several factors, including the decline in volume discussed above, under-absorption of sustained general and administrative expenses as the Company awaited the start-up of several large pending projects, the favorable close out of certain projects in 2011, and an unfavorable change in the new work margin mix. This decrease was partially offset by contributions from prior-year acquisitions.

At September 30, 2012, working capital was $639 million, an increase of $81.9 million from $556.8 million at December 31, 2011. The Company believes its financial position and credit arrangements are sufficient to support the Company's current backlog and anticipated new work.

Backlog at $5.6 billion

The backlog of uncompleted construction work at September 30, 2012 was $5.6 billion, a decrease of $0.3 billion from the backlog reported at June 30, 2012 and a decrease of $0.5 billion from $6.1 billion reported at December 31, 2011. Revenues earned during the third quarter more than offset the new awards and adjustments to contracts in process, which together added $0.8 billion. Additions to new work during the third quarter of 2012 included a $181 million hospitality and gaming project in California, a $73 million educational facility in New York, and a $63 million stadium renovation project in Mississippi.

Outlook

Despite ongoing economic and political conditions which have delayed the timing of awards and start of new work opportunities, the Company's third quarter results were in line with its expectations and the Company is maintaining its outlook for the remainder of fiscal 2012. As a result, the Company is affirming its guidance for fiscal 2012 revenues of $4.0 to $4.5 billion and diluted earnings per share, excluding the impairment charge and discrete items, of $1.50 to $1.70.

Ronald Tutor, Chairman and Chief Executive Officer, commented, "I am pleased with our results for the third quarter. Favorable legal developments, improved claims positions, and efficiencies realized on certain healthcare facility projects helped produce good results in our Building business, which is on-track to return to growth and consistent profitability by the first quarter of next year. We look forward to winning our share of the large-scale civil projects we have recently bid, which will fuel our growth over the next several years."

Civil Group

Our Civil Group is comprised of the operations of Tutor-Saliba Corporation, Tutor Perini Corporation, Cherry Hill Construction, Inc., Lunda Construction Company, and Frontier-Kemper Constructors and is engaged in public works construction throughout the U.S., including the repair, replacement and reconstruction of public infrastructure such as highways, bridges and mass transit systems. We have been active in civil construction since 1894 and believe we are expert at managing large, complex civil construction projects. Our corporate integrity, financial strength and outstanding record of performance on challenging civil works projects pre-qualifies us for projects in situations where smaller, less diversified contractors are unable to do so. This is a competitive advantage that makes us an attractive partner on the largest infrastructure projects and prestigious DBOM (design-build-operate-maintain) contracts, which combine the nation's top contractors with engineering firms, equipment manufacturers and project development consultants in a competitive bid selection process to execute highly sophisticated public works projects.

Building Group

The Tutor Perini Building Group is comprised of Tutor Perini Building Corp., Tutor-Saliba Corporation, James A. Cummings, Inc., Rudolph and Sletten, Inc., Keating Building Corporation, and Anderson Companies and focuses on large, complex projects in the hospitality and gaming, sports and entertainment, educational, transportation and healthcare markets. We believe our success results from our proven philosophy, "Building Relationships on Trust," and our ability to manage large, complex projects with aggressive fast-track schedules, elaborate designs and advanced systems while providing accurate budgeting and strict quality control. Although price is a key competitive factor, our strong reputation, long-standing customer relationships and significant level of repeat and referral business have enabled us to achieve our leading position. Our reputation for completing projects on time is a significant competitive advantage in the building market, as any delay in project completion may result in significant loss of revenues for the owner.

Specialty Contractors Group

Our Specialty Contractors Group is comprised of Five Star Electric, Fisk Electric, WDF, Desert Mechanical, Nagelbush Mechanical, and Superior Gunite and serves to complement and enhance our mechanical and electrical capabilities. The Specialty Contractors group has a sizable presence in New York, Texas and California and partners with other Tutor Perini companies throughout the United States.

Management Services Group

Comprised of Perini Management Services Inc. (PMSI) and Black Construction, the Tutor Perini Management Services Group provides diversified construction and design-build services to the U.S. military and government agencies, surety companies and multi-national corporations. PMSI and Black are well known for their ability to plan and execute rapid response assignments and multi-year contracts through diversified construction and design-build abilities. We have consistently demonstrated superior performance on competitively bid or negotiated multi-year, multi-trade, task order and ID/IQ (Indefinite Delivery/Indefinite Quantity) construction programs.

We have been selected by the federal government for significant projects related to defense and reconstruction projects in Iraq and Afghanistan. Black Construction Corporation of Guam is one of the most successful contractors in Guam and the Western Pacific.

The Management Services Group is also under agreement with major North American surety companies to provide rapid response, contract completion services. Upon notification from the surety of a contractor bond default, we provide management or general contracting services to fulfill the contractual and financial obligations of the surety.

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Corporate Officers :

Ronald N. Tutor, Chairman & CEO of Tutor Perini Corporation
With over 15 years at the Company and over 49 years in the industry, Mr. Tutor brings in-depth knowledge of our Company and the construction industry. Mr. Tutor has served as our Chief Executive Officer since March 2000 and as Chairman since July 1999. Mr. Tutor also served as Chairman, President and Chief Executive Officer of Tutor-Saliba Corporation ("Tutor-Saliba"), a privately held California corporation engaged in the construction industry, until Tutor-Saliba merged with the Company in September 2008.

Robert Band, President, Tutor Perini Corporation and CEO, Tutor Perini Management Services Group
Mr. Band joined Perini in 1973 and has held several operating and financial positions during his career with the Company, including President of the Company since May 1999. All of Tutor Perini's management services operations report to Mr. Band including Perini Management Services Inc. (PMSI) and Black Construction.

James ("Jack") Frost, Executive Vice President and CEO, Tutor Perini Civil Group
Mr. Frost was appointed to his current position in March 2009, and all of Tutor Perini's civil operations report to him, including Tutor-Saliba, Tutor Perini Civil, Cherry Hill Construction, Lunda Construction Company, and Frontier-Kemper Constructors. Mr. Frost previously served at Tutor-Saliba since 1988, where he was the Executive Vice President and Chief Operating Officer of Tutor-Saliba prior to the merger in September 2008.

Kenneth Burk, Executive Vice President and CEO, Tutor Perini Specialty Contractors Group
Mr. Burk was appointed to his current position in September 2011, and all of Tutor Perini's specialty contractor operations report to him, including Five Star Electric, Fisk Electric, WDF, Desert Mechanical, Nagelbush Mechanical, and Superior Gunite. Mr. Burk joined Tutor Perini in 2007 as Executive Vice President, Chief Financial Officer. Prior to joining Tutor Perini, Mr. Burk served in several financial executive positions for other peers in the E&C industry.

Michael Kershaw, Executive Vice President, Chief Financial Officer
Mr. Kershaw joined Tutor Perini in September 2011 as Executive Vice President, Chief Financial Officer. Previously, Mr. Kershaw was Senior Vice President and Chief Accounting Officer for The Shaw Group Inc. Mr. Kershaw has also held financial executive positions with KBR and McDermott earlier in his career. He is also responsible for Human Resources, Information Systems and Investor Relations.

William Sparks, Executive Vice President, Treasurer and Corporate Secretary, Tutor Perini Corporation
Mr. Sparks was appointed to his current position in March 2009. Mr. Sparks joined Tutor-Saliba Corporation in 1995 as Senior Vice President and Chief Financial Officer. Mr. Sparks also oversees Risk Management for Tutor Perini.


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