Cornell Cos. wins prisons contract from Alaska

Cornell Cos. wins contract to house up to 1,000 inmates from Alaska at Colorado prison

• On 6:31 pm EDT, Wednesday September 30, 2009

HOUSTON (AP) -- Cornell Cos. said Wednesday that it has won a contract from the state of Alaska to house up to 1,000 inmates at a Colorado prison that is still being built.

The inmates would be kept at a facility in Hudson, Colo., that has a capacity of 1,250 beds. It is being built and expected to be finished in November. Cornell did not disclose the value of the contract.

The contract's initial term is through June 2012, with renewal options through October 2019.

Cornell CEO James E. Hyman said that opening the prison earlier than forecast would cost the company 11 cents per share total spread across the third and fourth quarters of 2009. About 1 cent to 2 cents of that cost would be reported in the third quarter and another 9 cents to 10 cents would be reported in the fourth quarter, Hyman said in a statement.

Analysts polled by Thomson Reuters expect 44 cents per share in profit in both the third and fourth quarters.

Shares of Houston-based Cornell fell 20 cents to $22.44 on Wednesday.