February 09, 2016

AECOM First-Quarter Earnings Slide on URS Acquisition Expenses

By ExchangeMonitor

Infrastructure shop AECOM of Los Angeles, a partner on several major Energy Department cleanup sites, on Tuesday reported a net loss of $20 million, or $0.13 a share, on revenue of $4.3 billion in its 2016 fiscal first quarter, which ended Dec. 31.

The figure reflects losses attributable to the company’s $6 billion acquisition of rival URS Corp., which closed in the company’s 2015 fiscal year. Excluding those effects, the company earned $0.68 per diluted share.

Backlog shrank slightly to $40.1 billion in the 2016 first quarter, down 1 percent from a year ago as work coming out of the pipeline slightly eclipsed wins in the Construction Services Segment, which mainly serves the energy, oil and gas industries.

Management Services, the AECOM division involved with nuclear decomissioning for government customers, posted operating income of $86 million, down 2 percent from the year-ago quarter. Revenue fell 8 percent year over year to $724 million. The figure includes revenue from the URS Corp. acquisition.

AECOM, through a URS subsidiary, is leading cleanup at Oak Ridge. On the commercial side, the company in January emerged as a member of one of three bidders for an estimated $4.4 billion decommissioning contract at San Diego County’s San Onofre Nuclear Generating Station.

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