Revenue and profit up for Aecon
By Sarah Ann McCay14 August 2013
Canadian contractor Aecon Group reported increases in revenue and profit for the second quarter of 2013.
"Aecon generated strong results in the second quarter of 2013 and our outlook for the second half of this year is positive," said John M. Beck, chairman and CEO.
The contractor reported an +8% year-on-year increase in revenues for the three-month period to CA$ 697.6 million (US$ 676.6 million). Operating profit was up to CA$ 16.2 million (US$ 15.7 million) from CA$ 10.9 million (US$ 10.6 million) in the prior period.
Aecon also reported growth in backlog, which stood at CA$ 2.22 billion (US$ 2.1 billion) as at June 30, 2013, up from CA$ 2.07 billion (US$ 2 billion) at the end of the first quarter of 2013. The group signed CA$ 840 million (US$ 815 million) in new contracts during the three-month period.
Aecon said its higher revenue was driven by increases in its energy segment, the utilities business, including pipeline work, and from continued volume growth in the mining segment.
It said these increases were partly offset by lower revenue in the infrastructure segment, mainly in heavy civil, following the completion of Quito Airport and the Autoroute 30 Highway in Quebec, and in Social Infrastructure. Second quarter 2013 revenue in the infrastructure segment decreased by CA$ 54 million year-on-year (US$ 52 million), to CA$ 240 million (US$ 233 million).