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| Aecon reports improvement in first quarter Toronto-based Aecon Group, Canada’s largest publicly traded construction and infrastructure development company, reported improved operating results for the first quarter of 2007 as revenues, margins, operating profit and net loss all improved over those reported a year earlier. Revenues in the first quarter of 2007 totalled $242 million, an increase of more than 20% from the $201 million reported a year ago, as increases in the Infrastructure, Industrial and Concessions segments offset a decline in the Buildings segment. Gross margins (revenues less direct costs and expenses) increased by $12.5 million, bringing gross margins as a percentage of revenues to 7.8% this quarter, up from 3.2% in 2006, benefiting from both improved contract margins and the impact of improved revenues during Aecon's traditionally softest quarter. Operating profit of $0.1 million represents an $8.2 million improvement over the first quarter of 2006, as all four segments showed improvement in the quarter. Net loss in the quarter improved to $3.0 million ($0.08 per share) from $10.9 million ($0.36 per share in 2006), bringing net income over the trailing 12 months to $19.5 million, an $8.0 million improvement from the net income reported in fiscal 2006. Aecon's healthy backlog and the ongoing strength of the core markets bode well for continued improvement in 2007 and the achievement of its EPS objective of $0.75 in 2008. Backlog at March 31, 2007, was $837 million, or $180 million higher than at the same time last year. New contract awards of $292 million in the first quarter were $12 million higher than in 2006. write your comments about the article :: © 2007 Construction News :: home page |