TORONTO – Aecon Group Inc. (TSX:ARE) posted a net loss of $12.2 million in its second quarter, attributed mainly to lower revenue and margins in its mining construction segment following the completion of a significant project last year.
The unexpected loss amounted to 23 cents per share under standard accounting, and 26 cents per share after adjustments.
Overall revenue from the Toronto-based construction company’s three main divisions was $589.6 million, down from $697.6 million, with only energy posting an increase. Revenue from its energy segment was up $19.1 million, revenue from Infrastructure was down $48.8 million and Mining revenue fell $85.2 million.
Analysts had estimated a net profit of 15 cents per share or 12 cents per share on an adjusted basis with $641.52 million of revenue, according to data compiled by Thomson Reuters.
The Toronto-based company said that its mining sector has been recovering since the quarter ended and Aecon expects the second half of the year to be stronger in 2014 than is usually the case.
It also said that it has been awarded $280 million for three large contracts since the quarter ended on June 30 _ one for each of its three operating segments.
“While we were disappointed by the delay we experienced in securing the additional work we have now booked for our mining business and the temporary client production shutdowns in the oil sands during the second quarter, we move forward with confidence into the second half of 2014 with major new Infrastructure projects ramped up and significant mining work in hand,” Teri McKibbon, Aecon’s president and chief executive officer, said in a statement Monday after markets closed.
Note to readers: This is a corrected story. A previous version moved Aug. 11 incorrectly said that revenue from Aecon’s three main divisions was $589.6 billion instead of $589.6 million in para 3