that have as much to distinguish them one from the other as they have in common. While generally speaking each type of work calls for building something new that did not exist before, there is considerable difference between constructing homes and driving tunnels, between dredging and commercial building construction. The risks are different, the skills are different, the people required are different, and the equipment used is different. The classes of work in which Utah normally engages actually comprise only about 17% of the domestic construction market and a somewhat higher percentage of the foreign market, where a substantial part of our work is performed. While we have increased our commitment in construction assets in recent years, the contribution of construction activities to our profits has not responded favorably. Gross profits have fluctuated violently from year to year and reached an all-time record peak in 1961 and in 1964 may well record our largest loss. In the past decade our construction activities have done little more than cover overhead charges and left little for the stockholder as a return on his investment. Our experience is not uncommon in the industry, for intense competition has caused profit margins to decline substantially since 1956. In 1963 and again in 1964 the difference between a profit and a loss in our construction division could be attributed to a single contract, which, fortunately, will be completed this year. This contract is the largest loss ever experienced by our company and has obviously depressed our earnings -3-