Aecon posts improved results

By Sarah Ann McCay05 May 2012

Canadian contractor Aecon Group posted improved results for the first quarter of 2012, compared to figures from 2011, thanks to strong performances from its Infrastructure and Industrial segments, as well as Aecon Mining.

Operating profit for the company entered into a positive, with EBITDA at CAD 400,000 (US$ 400,761) on revenues of CAD 502.2 million (US$ 503 million). This compared to a loss of CAD -14 million (US$ -14.03 million) on revenues of CAD 512 million (US$ 513 million) in Q1 2011.

Operating loss for the period also improved to CAD -16.1 million (US$ -16.13 million), compared to CAD -28.7 million (US$ -28.75 million) in 2011.

Aecon also reported a record Q1 backlog of CAD 2.4 billion (US$ 2.4 billion) at March 31,2012. This was due to a significant increase in Industrial. New contract awards of CAD 491 million (US$ 492 million) - an increase of CAD 128 million (US$ 128.2 million) - were booked in the quarter compared to CAD 363 million (US$ 363.7 million) in the first quarter of 2011.

The backlog does not include the expected revenues from Aecon's alliances and supplier-of-choice arrangements. Nor does it include an award to build six 10MW solar parks in Ontario for Northland Power Inc, which was signed subsequent to the quarter end.

According to Teri McKibbon, chief operating officer at Aecon, the company's Buildings team has made considerable improvement since the losses incurred in the first quarter of 2011 while its Industrial sector is picking up additional work that should yield beneficial results going forward.

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