Aecon revises backlog to US$2.6 billion

Canadian contractor Aecon Group has posted an improved backlog of US$ 2.66 billion, as at May 31, up nearly US$ 285 million on the backlog reported at the end of its first quarter (March 31, 2012), which stood at US$ 2.38 billion.

The company's Infrastructure sector saw the biggest gain in backlog, at US$ 1.76 billion at May 31, 2012, compared with US$1.4 billion at the end of Q1 2012. Figures from its Industrial sector saw backlog drop from US$ 976 million to US$ 897 million over the two-month period.

Highlights from Aecon's Infrastructure segment include the start of work on approximately US$ 70 million of new awards in the transportation sector in Ontario.

Not included in its current backlog figures, Aecon also reported a ‘soft backlog' of approximately US$ 600 million in annual revenues from its growing alliances and supplier-of-choice arrangements. This represents 15-20% of Aecon's business.

David Smales, executive vice president and CFO, predicts steady margin growth for the company over the next few years. He links this, in part, to the strong recovery in industrial markets across Canada, and also points to growth in "larger turnkey projects, growth in mining and less traditional general construction work," for Aecon.