Aecon reports flat profits in third quarter as backlog shrinks
November 1, 2019 by The Canadian Press
MONTREAL—Aecon Group Inc. says profits stayed flat last quarter after construction and nuclear projects drove adjusted earnings that slightly topped analysts’ expectations.
The Toronto-based company says net income nudged up 0.2 per cent year over year to $42.1 million in its third quarter, driven by the construction segment’s slightly higher revenues in civil operations and urban transportation systems.
Nuclear refurbishment work in Ontario also helped offset lower industrial revenues that stemmed from the sale of a contract mining business last November and less work on pipeline projects in Western Canada.
Revenue for the three months ended Sept. 30 rose to $1.02 billion, one per cent higher than during the same period in 2018.
On an adjusted basis, earnings per diluted share stayed flat at 60 cents, beating analysts’ expectations of 58 cents, according to financial markets data firm Refinitiv.
Aecon says it booked new contracts worth $827 million last quarter versus $1.58 billion a year earlier, resulting in a current backlog of $6.56 billion compared with $7.01 billion in the third quarter of 2018.