Balfour Beatty Shares Plunge 16% After CEO Andrew McNaughton Steps Down
Balfour Beatty Shares Plunge 16% After CEO Andrew McNaughton Steps DownReuters

Balfour Beatty shares plunged 16% on market open after the infrastructure and services giant said that its chief executive officer Andrew McNaughton was stepping down with immediate effect.

The Balfour Beatty stock price tanked to 239.90p as the group announced McNaughton's departure after it also revealed that it expects a £30m shortfall in our UK construction business in 2014.

"McNaughton has served the group for the last 17 years in a wide variety of roles. I would like to thank McNaughton personally and on behalf of the Board for his major contribution. We wish him well for the future," said Steve Marshall, Balfour Beatty's non-executive chairman.

Balfour Beatty said its professional services, support services and the investments division continue to perform well and are in line with management expectations.

As a result overall group pre-tax profits for 2014 are expected to be significantly lower than previous expectations, in the range of £145 - £160m.

"A strategic review has led the group to evaluate options for the possible sale of Parsons Brinckerhoff, conditional on providing attractive shareholder value," it added in a statement.