Aecon records best ever quarter

Canadian construction Group Aecon recorded its best ever 3 months of trading in the third quarter of 2008. Revenues for July, August and September jumped +25% to CA$ 535 million (US$ 423 million) from CA$ 430 million (US$ 340 million) in the third quarter of 2007.

Pre-tax profit rose +83% from CA$ 20 million (US$ 16 million) in the third quarter of 2007 to CA$ 37 million (US$ 29 million) for the corresponding quarter this year. Net profit for the quarter also increased by +21% from a 2007 figure of CA$ 19 million (US$ 15 million) to CA$ 23 million (US$ 18 million).

The infrastructure division of the Aecon improved revenues from CA$ 225 million (US$ 178 million) in the third quarter of 2007 to CA$ 238 million (US$ 188 million) in the corresponding quarter of 2008, a + 5.7% increase. Operating profits for corresponding quarters jumped +40% from CA$ 12 million (US$ 9 million) to CA$ 16.8 million (US$ 13 million).

During the quarter Aecon announced its largest ever road building contract, valued at CA$ 105 million (US$ 83 million), to reconstruct and widen a section of Highway 410 in Southern Ontario.

In the buildings division of the Group, CA$ 113 million (US$ 89 million) of sales in the third quarter of 2007 could not be matched in 2008 and dropped by -3.5% to CA$ 109 (US$ 86 million). The decrease was primarily attributable to a CA$ 26 million (US$ 20 million) fall in the segment’s operations in Ottawa, although this was largely offset by an CA$ 18 million (US$ 14 million) increase in revenues from work in Toronto.

“The fundamental need to upgrade Canada’s transportation, energy and social infrastructure is as real today as it ever has been, notwithstanding the current economic instability,” said John Beck, chairman and CEO of Aecon.