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.
© 2023 The Canadian Press