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Aecon profits down on lower mining activity as company awaits fate of takeover

The Canadian Press
Aecon profits down on lower mining activity as company awaits fate of takeover

TORONTO — Aecon Group Inc. says its profits dropped in 2017 on lower commodities activity but that the proposed takeover of the company by a Chinese state-owned business helps position it for future growth.

The proposed $1.5 billion takeover of Aecon by CCCC International Holding Ltd. has, however, raised security concerns, prompting the federal government in February to order a full national security review of the deal.

Critics of the deal have pointed to the potential involvement of the Communist Party in decision-making and alleged corruption at the state-owned company, but Aecon has pushed back against what it says are misleading statements about the deal.

Aecon says it had a profit of $28.2 million in 2017, down from $46.8 million a year earlier as revenue fell 13 per cent largely from lower activity in the commodity mining sector.

The Toronto-based construction firm says for the fourth quarter ending Dec. 31 the company had a profit of $21.1 million or 33 cents per diluted share, down from $29.1 million or 43 cents per share for the same quarter last year.

The results were below average analyst expectations of $24.2 million and 38 cents per share according to Thomson Reuters.

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