Aecon sees recovery

03 March 2010

Aecon's revenues for 2009 came to CA$ 2.26 billion (US$ 2.18 billion), a +20% increase on 2008's CA$ 1.88 billion (US$ 1.81 billion). However, net profits fell -25% to CA$ 44.4 million (US$ 42.9 million), compared to the previous year's CA$ 59.3 million (US$ 57.3 million).

The company said the growth in revenues was due to its acquisition of Canadian general contractor Lockerbie & Hole and Alberta, Canada-based road builder South Rock.

The company said its profits were hit by weaker demand in its industrial segment as well as losses on two projects carried out by its Building division in Ontario. It also suffered a CA$ 5.6 million (US$ 5.4 million) foreign exchange loss. On the positive side, the company said its Infrastructure business had a particularly good year in 2009.

However, company chairman John M. Beck said he saw an improving outlook. "I believe 2010 and 2011 will be characterised as a time of recovery in private sector investment, likely more so in the latter half of the period, combined with a return to more traditional levels of bidding activity in the public infrastructure sector, which today is a s strong as we have ever seen it," he said.

Mr Beck added, "As such, 2011 and 2012 may be the period where results are most likely to reflect strength in both the private sector and public sector elements of our business."

The company's backlog at the end of 2009 stood at CA$ 2.18 billion (US$ 2.11 billion), a +74% rise on the same position last year. Again, the company said its acquisition of Lockerbie & Hole and South Rock contributed to this.

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