Profits up but revenue down at Aecon

Canadian contractor Aecon Group reported a US$ 13.5 million year-on-year increase in gross profit for the second quarter to US$ 62.4 million, and a US$34.1 million increase for the first half of 2012, to US$ 99.2 million, despite a drop in revenue throughout the period.

Revenue dropped US$ 97 million, or -13%, and US$ 107 million (-8%), for the three and six months respective, over 2011 results. This drop came regardless of a doubling in revenue from Aecon Mining.

The firm attributed the decline in revenue to a US$ 50 million loss due to reduced activity within its buildings group, a US$ 16 million decline from its concessions segment, and weather-related softness in transportation and utilities that impacted revenue by approximately US$ 25 million.

Despite the decline in revenue, Aecon posted an improved backlog of US$ 2.7 billion as at June 30, 2012, compared to US$ 2.2 billion at the same time last year. This increase was driven by new awards in the first half of 2012.

Following the posting of its second quarter figures, Aecon signed multi-year awards amounting to approximately US$ 470 million, which will be booked as backlog in Q3 of 2012.