TORONTO — Shares of Aecon Group Inc. fell more than 15 per cent Thursday morning after the company said it faced challenges with four large fixed-price legacy projects being carried out by joint ventures in which it is a partner.
In reporting its third-quarter results, the company says it took an operating loss related to the legacy projects amounting to $91.1 million, compared with an operating loss of $30.1 million related to the projects in the same quarter a year earlier.
Aecon shares were down $1.68 at $8.84 in early trading on the Toronto Stock Exchange.
Overall, Aecon reported its third-quarter profit rose to $133.4 million or $1.63 per diluted share for the quarter ended Sept. 30, boosted by the sale in September 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 in the same period in 2022.
Aecon closed the sale of the stake in Bermuda Skyport, the Bermuda International Airport concessionaire, for $162.3 million in cash following certain closing adjustments.
Analysts identified two 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.
Companies in this story: (TSX:ARE)
The Canadian Press
