Aegion Cuts FY13 Outlook, Stock Down 9%

(RTTNews) - Aegion Corp. (AEGN) Wednesday lowered its full-year 2013 outlook citing lower workable backlog and delays in new projects. Following the announcement, Aegion shares dropped about 9 percent on the Nasdaq.

Aegion projected full-year adjusted earnings in a range of $1.27 to $1.32 per share, down from its prior guidance of $1.53 to $1.60 per share. Analysts polled by Thomson Reuters currently expect the company to report full-year earnings of $1.42 per share. Analysts' estimates typically exclude special items.

The firm said it is working to evaluate the carrying values of certain of its business units based on the revised forecast and the outlook for 2014. The revised guidance does not reflect any reassessment of the business unit carrying values.

"While we are experiencing strong performance from North America Water and Wastewater and Corrpro as well as forecasted contributions from Brinderson, we have not achieved the required level of project activity in several of our businesses to meet our guidance, " said Joseph Burgess, President and CEO.

The revised outlook also includes a half year contribution from Brinderson from recent maintenance program awards in California and prospects for growth in the Permian Basin along with the inclusion of a full year of results.

For the fourth-quarter, the company has forecast adjusted earnings in the range of $0.40 to $0.45 per share. Analysts currently expect fourth-quarter earnings of $0.58 per share.

Aegion shares are currently trading at $20.0, down $1.96, or 8.94%, on the Nasdaq.