Aecon reports loss of $9.4M in first quarter as cost inflatio

TORONTO – Aecon Group Inc. reported a loss in its first quarter as cost inflation and depressed travel volumes affected results.

The construction and infrastructure development company says it had a loss of $9.4 million in its quarter ending March 31 compared with a loss of $17.4 million for the same quarter last year.

Revenue came in at $1.1 billion for the quarter, up from $986 million in last year’s first quarter.

The company recognized an operating loss of $2.8 million in the quarter on four fixed-price projects that have see cost inflations, while for the full 2022 year the operating loss on the projects was recorded as $120 million.

Aecon also says lower air travel has affected its Bermuda International Airport project where returns are driven by passenger traffic levels that, while recovering, are still below pre-pandemic levels.

The company announced in March that it had sold a 49.9 per cent interest in the airport project for US$128.5 million in cash.

This report by The Canadian Press was first published April 25, 2023.

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