Aegion Unit Wins $6.7M Contract
Aegion Corporation (AEGN) declared that its unit, Insituform Technologies, LLC, has won an additional contract from the Metropolitan St. Louis Sewer District (MSD), worth around $6.7 million. As per the contract, Insituform will provide rehabilitation work with Cured-in-Place Pipe (:CIPP).
Insituform, a global leader in the development and installation of proprietary technologies and services for repairing sewer, water and other underground piping systems, will install over 34 miles of CIPPs. The project entails fixing wastewater pipelines ranging from 8–60 inches in diameter throughout the city.
This project is part of MSD’s $4.7 billion capital improvement and replacement plan. Insituform, which has prior experience of working with MSD, was recently awarded two contracts in April valued at around $10.4 million. The project is expected to begin in Sep 2013 and will be completed after 12 months.
Aegion, which belongs to the building and construction industry along with Armstrong World Industries, Inc. (AWI), reported second-quarter 2013 adjusted earnings from continuing operations of 47 cents per share, up 57% from 30 cents in the year-earlier quarter. The results surpassed the Zacks Consensus Estimate of 38 cents.
For full-year 2013, Aegion revised earnings guidance in the new range of $1.58 to $1.70. The company forecasts the second half to grow on robust end-markets and strong market fundamentals.
Chesterfield, MO-based Aegion is a diversified building and construction company which provides infrastructure protection, proprietary technologies and services. It also offers services related to the rehabilitation and improvement of sewer, water, energy and mining piping systems.
Aegion currently carries a Zacks Rank #3 (Hold).
Other stocks in the same industry with favorable Zacks rank include CaesarStone Sdot-Yam Ltd. (CSTE) with a Zacks Rank #1 (Strong Buy) and Masco Corporation (MAS) with a Zacks Rank #2 (Buy).
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