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Aecon slumps after Q4 profit drops by half

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Aecon Group Inc. (TSE:ARE), a construction company, slumped in morning trading after saying earnings tumbled by half in the fourth quarter as revenue declined.

Aecon fell 4.4 percent to C$16.01 at 9:54 a.m. in Toronto.

Net income crumbled to C$28.3 million, or 54 Canadian cents per basic share, in the three months ended Dec. 31, from C$56.3 million, or C$1.06 per basic share, in the year-earlier period, the Toronto, Ontario-based company said in a statement yesterday.

On an adjusted basis, earnings were 50 Canadian cents, below the average estimate of 58 cents a share.

Revenue skidded to C$906.2 million from C$932.1 million.

The construction company boosted its annual dividend by 12.5 percent to 36 Canadian cents per share from 32 Canadian cents per share.

Backlog was $1,773 million at Dec. 31, 2013 , compared to $2,428 million at the end of 2012.

Aecon said its outlook for the year is positive. It also announced its top-level succession plan, which will see Teri McKibbon, its president and operating chief, become president and chief executive in June. John M. Beck will become executive chairman.

 

 

Quick facts: Aecon Group

Price: 18.25 CAD

TSX:ARE
Market: TSX
Market Cap: $1.11 billion
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