Topic: How To Invest

Pat: What do you see as the outlook for Aecon Group? Is it a buy? Thank you.

Article Excerpt

Aecon Group Inc., $11.96, symbol ARE on Toronto (Shares outstanding: 54.6 million; Market cap: $653.0 million), is one of Canada’s largest construction and infrastructure developers. Aecon and its predecessors built Canadian landmarks, such as the CN Tower, the St. Lawrence Seaway, the Calgary Olympic Oval and the Halifax Shipyards. Aecon started out in Brampton, Ontario, as Armbro Construction in 1929. In 1999, Armbro made a major acquisition when it bought BFC Construction Corporation for $104 million. The new company, Armbro BFC, changed its name to the Aecon Group in 2001. Aecon has four divisions: The Infrastructure Group, which accounted for 41% of Aecon’s 2009 revenue, is a leading road builder and utilities contractor. It also sells asphalt and aggregates (crushed stone or gravel that is used to make concrete). As well, the Infrastructure Group handles heavy civil projects, including roads and highways, tunnels and hydroelectric-power projects. The Industrial Group (33% of revenue) builds plants and facilities and assembles related components…