in downtowi _.. wholly-owned subsidia ...... icas is constructing this modern zu siory omce building at a cost of 5,200,000 the parent company has a 25 per cent ownership interest in this project construction during 1956 utah construction company directly in joint venture or through subsidiary companies performed engineering and con struction services in the united states and in many parts of the world foreign construction operations were conducted in canada mexico colombia peru guam okinawa korea australia and france virtually every type of construction was represented includ ing dams tunnels bridges powerhouses industrial plants for steel chemical copper electronics and nuclear industry commercial office and government buildings military and naval installations for foreign and domestic governments dredging and harbor develop ment airport construction public and private housing contract stripping and mining our construction portfolio remains diversified by types of work and by geographical areas in which the work must be performed our gross income from construction and closely related activi ties remained virtually unchanged from the levels of the previous year despite a large increase in the volume of work performed gross income from domestic construction performed by the parent company was adversely affected by two factors first was losses reported by joint ventures in which your company was a participant the second factor was the use of the declining balance method of depreciation on equipment purchased since january i 1954 which resulted in heavier depreciation charges against work performed durjn whjje domestic increasedwer the le joint ventures in winch tracts that are relatively loag^terms^nature/jind it is epeen ee to note that^profit performance under these contracts showed sub stantial improvement irrthe last few months of our fiscal year when work had been completed on the early phases on construction sched ules on which losses had been especially heavy the contrast of favorable foreign construction earnings in a year when results from domestic esults f mphasiz s the g p mportance of diversification in our construction portfoli during 1 956 by sale or liquidation the company disposed of its interest in certain subsidiary and affiliated companies primarily concerned with construction or with the operations of housing de velopments utah construction limited which participated in the construction of the big eildon dam in australia was liquidated consolidated builders inc in which we held a 10 per cent interest also voted a final plan of liquidation which will be completed in 957 the company sold its interests in companies concerned with the ownership and operation of housing developments at bisbee arizona wichita kansas and salina kansas a profit was realized by the company on each of these transactions during 1956 utah completed construction at stockton california of a 6,000,000 modern walnut processing and storage plant for the california diamond walnut growers associalion which em braces 13 acres of floor space photo shows the huge ammonia absorption refrigeration plant which services the operation