Shares of Aecon Group Inc. were down more than 10 per cent after the company said it faced challenges with four large fixed-price legacy projects that are being performed by joint ventures in which it is a partner. An Aecon construction site is shown near the Gardiner Expressway is shown in Toronto on Friday, July 10, 2020. THE CANADIAN PRESS/Joe O'Connal
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.
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