The CIMIC Group Ltd (ASX: CIM) share price edged higher in early trade before retreating again, down 1.2% at the time of writing. This comes after the building company's latest quarterly update.
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What's impacting the CIMIC share price?
CIMIC reported comparable group revenue flat on the prior corresponding period (pcp) at $3.4 billion with no material impact from the coronavirus pandemic.
The Aussie building group also reported higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin at 10.0%. That was largely thanks to cost reduction initiatives during the quarter.
The CIMIC share price could be worth keeping an eye on today after reporting net profit after tax of $100 million for the quarter.
Free operating cash flow pre-factoring improved by $106 million compared to Q1 2020 and quarter on quarter improvement. CIMIC said the company's FY21 focus is on "managing working capital, generating sustainable cash-backed profits and a rigorous approach to tendering, project delivery and risk management".
CIMIC also said the Greensill fallout has no impact on the company or its supply chain finance.
The company reported new work in hand of $30.2 billion. Significant government stimulus in Construction and Services markets have helped boost the company's business in the first quarter.
FY2021 guidance
The other big news that could impact the CIMIC share price was this morning's guidance announcement. CIMIC has maintained its FY2021 net profit after tax forecast at $400 million to $430 million. That's on the back of the strong work pipeline, up $1.2 billion year on year.
CIMIC CEO Juan Santamaria said, "We are well-positioned in growth markets, with attractive tailwinds from the COVID-recovery infrastructure spending and a backlog of services and maintenance work".
The CIMIC share price has climbed more than 1% in early trade following the quarterly update. CIMIC reported a strong balance sheet position with $3.7 billion in liquidity at quarter-end. Shares in the Aussie building group are trading at$18.69, down 23% year to date.
