TORONTO, Feb. 4 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that
change order negotiations on Suncor's Firebag III Central Plant
Facilities (CPF) project will result in significant losses being
recorded on the project.
While negotiations have not yet concluded, total operating losses on the
project will be in the $56-$59 million range ($40-$42 million after
tax), leading to an operating loss in the Industrial segment for the
year ended December 31, 2010.
Aecon turned over the Firebag III CPF project to Suncor at 2010 year
end, and assisted Suncor with transitioning from completing
construction to pre-commissioning mode. As such, the impact of project
losses is limited to the 2010 fiscal year, and will not affect Aecon's
financial results in 2011.
"Notwithstanding the unsatisfactory financial results achieved on the
project, we continue to have a solid working relationship with Suncor,
and continue to work on a number of Suncor sites including the Firebag
IV cogeneration project and the Millennium Naphtha Unit," said John M.
Beck, Aecon's Chairman and CEO. "We remain as committed and optimistic
as ever for Aecon's ongoing success in the oilsands."
Aside from the final settlement of these change orders, and the
previously disclosed $30-$35 million after tax gain on the sale of
Aecon's interest in the Cross Israel Highway concession, Aecon's
results for the fourth quarter of 2010 are generally in line with
Aecon Group Inc. is Canada's largest, publicly traded construction and
infrastructure development company. Aecon and its subsidiaries provide
services to private and public sector clients throughout Canada and on
a selected basis internationally. Aecon is pleased to be recognized as
one of the Best Employers in Canada as published by Maclean's Magazine.
The information in this press release includes certain forward-looking
statements. These "forward-looking" statements are based on currently
available competitive, financial and economic data and operating plans
but are subject to risks and uncertainties. In addition to general
global events outside Aecon's control, there are factors which could
cause actual results, performance or achievements to vary from those
expressed or inferred herein including risks associated with an investment in the common shares of Aecon and
the risks related to Aecon's business, including Large Project Risk and
Contractual Factors. Risk factors are discussed in greater detail in
the section on "Risk Factors" in the Final Short Form Prospectus filed
on October 1, 2010 and available at www.sedar.com. Forward-looking statements include information concerning possible or
assumed future results of operations or financial position of Aecon, as
well as statements preceded by, followed by, or that include the words
"believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should" or similar expressions. Important factors, in
addition to those discussed in this document, could affect the future
results of Aecon and could cause those results to differ materially
from those expressed in any forward-looking statements.
SOURCE Aecon Group Inc.
For further information:
Senior Vice President
Aecon Group Inc.