Los Angeles Business Journal

Aecom Plunges on Earnings Outlook

By Deborah Crowe Tuesday, August 6, 2013

Share of Aecom Technology Corp. dropped 17 percent on Tuesday after the professional technical services company cut its full-year earnings guidance.

The Los Angeles company, which works on construction and other infrastructure projects for commercial and government clients, reported net income of $70.7 million (70 cents a share) for the quarter ended June 30, 11 percent higher than in the same period a year earlier. Revenue fell 22 percent to $2.07 billion.

Analysts surveyed by Thomson Reuters on average had expected the company to report profit of 64 cents a share on revenue of $2.10 billion.

In lowering its outlook, Aecom cited deterioration in its Australian mining business, and slower conversion of backlog in its Americas region. The company now expects full-year earnings of $2.30 to $2.40 a share, lower than the Wall Street consensus average of $2.45.

Even so, Chief Executive John M. Dionisio touted new business the company had won in the quarter.

“In a challenging growth environment, we booked $1.9 billion in new wins, which contributed to our $16.8 billion in backlog,” Dionisio said in a statement. “We also saw on-going strength in emerging markets, such as Asia, Africa and the Middle East.”

Shares closed down $5.84, or 17 percent, to $29.36 on the New York Stock Exchange.