Aecom Shares Drop After Earnings ReportTuesday, November 13, 2012
Shares of Aecom Technology Corp. sank during midday trading on Tuesday after the company reported earnings for the fiscal quarter and fiscal year ended Sept. 30.
The downtown L.A. professional and technical service provider reported a quarterly net loss of $225 million due to an impairment charge, compared with a profit of $88.4 million in the same period a year earlier. Revenue was $2.08 billion, down 2 percent from $2.12 billion. Wall Street had estimated revenue of $2.22 billion.
Aecom reported a $336 million impairment charge for its European business and management support services division, which works primarily with U.S. government customers. The charge resulted from the European economic crisis and a loss of revenue in the management support services division from the drawdown of troops in Iraq.
Without the charge, Aecom would have reported profitability for the quarter and the year. For the year, Aecom reported a net loss of $56.9 million compared with a profit of $284 million the year before. Annual revenue was $8.22 billion, up 2 percent from $8.04 billion.
Shares were trading down $2.76, or nearly 13 percent, in midday trading to $19.