Aecon shares sink 12%, troubles with legacy projects persist
Posted October 26, 2023 11:18 am.
Last Updated October 26, 2023 4:26 pm.
TORONTO — Shares of Aecon Group Inc. fell 12 per cent Thursday after the company said it faced challenges with four large fixed-price legacy projects being carried out by joint ventures in which it’s a partner.
In reporting its third-quarter results, the company noted an operating loss related to the infrastructure projects amounting to $91.1 million, compared with an operating loss of $30.1 million related to the projects in the same period a year earlier.
Aecon sharesdropped by $1.27 to close at $9.26 on the Toronto Stock Exchange on Thursday.
Overall, Aecon reported profits rose to $133.4 million or $1.63 per diluted share for the quarter ended Sept. 30, boosted by the recent sale of a 49.9-per-cent stake in Bermuda Skyport Corp. Ltd. The result compared with net income of $34.5 million or 45 cents per diluted share a year earlier.
Third-quarter revenue totalled $1.24 billion compared with $1.32 billion the year before.
Aecon closed the sale of the stake in Bermuda Skyport, the Bermuda International Airport concessionaire, in September for $162.3 million in cash.
Analysts identified two particularly problematic infrastructure projects as the Eglinton Crosstown light-rail transit system in Toronto and the Gordie Howe bridge being built between Detroit and Windsor, Ont.
This report by The Canadian Press was first published Oct. 26, 2023.
Companies in this story: (TSX:ARE)
The Canadian Press
