AECOM First-Quarter Results Indicate Positive Start to 2010

02/17/2010
AECOM Technology Corp., Los Angeles, gave investors some positive news in its first-quarter 2010
earnings announcement, released on Feb. 9, reporting revenue up 2%, to $1.5 billion, for the three
months ending Dec. 31, 2009, compared to the same period a year earlier. Backlog jumped 11% in
the quarter to $10 billion, and net income increased 12%, to $46 million, over last year.
Through a steady stream of acquisitions, the
firm has broadened its reach and made results less sensitive to a falloff in one sector of the
economy or world. The company acknowledged that first-quarter operating income decreased 5%
year-over-year because of a onetime charge of $8.2 million linked to layoff and severance costs in
the U.K. as well as the expense of launching a global branding initiative. But the design firm says it
is on track to meet earnings targets in 2010.
CEO John M. Dionisio reported particularly solid markets in North America, Asia, Australia and the
Middle East. He said the firm is pursuing nearly $15 billion in new U.S. government work and has
benefited in its transportation and facilities businesses from the federal stimulus.The company said
its new-contract wins exceeded $750 million in January alone.
AECOM did note decreased results in its professional technical services unit, which includes
planning, architecture, consulting, engineering and construction management for institutional,
commercial and government clients. The firm reported first quarter revenue for the unit down 2%, to
$120 million, over the 2009 first quarter, and operating income off 3%, to $76 million. But its
management support services unit, which serves federal agencies, made up the gap with revenue
up 24% and operating income rising 34%, the firm reported.
At least one stock watcher also was upbeat. Growth in backlog will start to accelerate even more in
the second half of the fiscal year when you will start seeing stimulus dollars flow in a more
meaningful way, says Andrea Wirth, analyst with Robert W. Baird & Co., Milwaukee.

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