TORONTO, June 18, 2012 /CNW/ - Aecon Group Inc. (TSX: ARE) today
announced that its backlog stood at $2.663 billion as at May 31, 2012,
compared with $2.379 billion that was reported at the end of the first
quarter (March 31, 2012).
During its Investor Day to be held in Toronto today (and webcast between
1:00-5:00 p.m.), the Company will outline its current strategy and
strengths that it expects will generate growing revenues and earnings.
"Aecon stands not only poised to deliver but is generating stronger
results," said John M. Beck, Chairman and Chief Executive Officer.
"Our $2.663 billion backlog embeds improved margins than previously
achieved as a result of our disciplined bidding approach, the strong
market sectors in which we have positioned ourselves, and our
capabilities to self-perform a comprehensive range of construction
services across Canada. Our focus on execution - including cost
control, risk management and synergy opportunities within our business
units - is expected to lead us on a path of sustainable growth in
The Company's backlog as at May 31, 2012, is broken down as follows:
Not included in backlog, but important to Aecon's business and prospects
due to the significant volumes involved, are the expected revenues from
its growing alliances and supplier-of-choice arrangements where the
amount and/or value of work to be carried out is not specified. This
additional work, or 'soft backlog', is now expected to be approximately
$500-$600 million on an annual basis. This represents between 15 and
20 per cent of Aecon's business today and underlines the emergence of
the recurring maintenance and construction service business that it is
providing among its broad-based clients.
David Smales, Executive Vice President and CFO, said: "We expect steady
margin growth over the next few years. This is linked to ongoing
growth in backlog contract margin and supported by internal and
external factors, including improved operational efficiency, mix of
work - larger turnkey projects, growth in mining and less traditional
general construction work - and market opportunities such as increased
demand for construction services in areas of Aecon's core capabilities
and the strong recovery in industrial markets across Canada."
BUSINESS UNIT HIGHLIGHTS OF INVESTOR DAY PRESENTATIONS
Work is underway on approximately $70 million of new awards in the
transportation sector in Ontario.
The Edmonton Alberta Henday ring road joint venture is currently
completing design, permitting, finalizing contracts and locating
utilities with construction expected to begin in Q4 2012. Aecon has a
22.5 per cent interest in the integrated joint venture.
Near to medium term opportunities being pursued for mainline pipeline
contracts through Aecon's strategic alliance with RB Somerville.
Additional fabrication work for the oil sands has recently been awarded
with a value of approximately $75 million.
Started work since the beginning of the year on three new contracts for
Cameco Corporation, Laricina Energy Ltd. and Suncor Energy with a
combined value of over $100 million including:
An underground mechanical installation at Cameco's Cigar Lake project in
northern Saskatchewan. Cigar Lake is the world's largest undeveloped
high-grade uranium deposit.
A multi-discipline field work contract for Laricina Energy at the
Germain SAGD project, 130 kilometres southwest of Fort McMurray,
A multi-trade field contract at Suncor's McKay River facility, north of
Fort McMurray, Alberta.
New Quito International Airport targeted for opening in October 2012.
Recent transaction by CCR S.A. for 45.5 per cent interest in Quito
Airport concession valued at US $140 million. Aecon holds an
equivalent stake in the concession.
Aecon Group Inc. is a Canadian leader in construction and infrastructure
development providing integrated turnkey services to private and public
sector clients. Aecon is pleased to be consistently recognized as one
of the Best Employers in Canada.
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 events
beyond Aecon's control, there are factors which could cause actual or
future results, performance or achievements to differ materially from
those expressed or inferred herein including, but not limited to: the
timing of projects, unanticipated costs and expenses, general market
and industry conditions and operational and reputational risks,
including Large Project Risk and Contractual Factors. Readers are
referred to the specific risk factors relating to and affecting Aecon's
business and operations as filed by Aecon pursuant to applicable
securities laws. Forward-looking statements may include, without
limitation, statements regarding the operations, business, performance,
prospects, strategies and outlook for Aecon. Forward-looking
statements, may in some cases be identified by words such as "will,"
"plans," "believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should" or the negative of these terms, or similar
expressions. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they are
made and Aecon undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE Aecon Group Inc.
For further information:
Aecon Group Inc.