Aegion Unit Wins $10M U.S. Army Contract - Analyst Blog

By
A A A

Corrpro Companies, Inc., a unit of Aegion Corp. ( AEGN ), has secured a three-year fixed price and quantity contract valued at $10 million from the US Army Corps of Engineers for cathodic protection and corrosion control services.

Corrpro Companies provides extensive corrosion engineering services and cathodic protection materials for steel reinforced concrete structures including bridges, parking garages, buildings and marine structures such as piers and wharves.

As per the contract, Corrpro Companies will provide engineering services including the assessment, design and installation of cathodic protection systems at military installations worldwide.


In addition, the company will offer corrosion studies, training of base personnel and field consulting during construction. The deal also involves system evaluation through post construction services.

Aegion will benefit from its strong backlog as of the third quarter-end. Furthermore, these contract wins and the scope for Aegion to win other future projects from Metro Water Services bode well for the company.

On the flipside, Aegion slashed its fiscal 2013 adjusted earnings guidance to the range of $1.27 to $1.32 per share from its earlier guidance of $1.53 to $1.60. Most of the downward revision in the yearly guidance was due to the expected weak results in the Commercial and Structural segment.

Nevertheless, Aegion is witnessing strong performance from North America Water and Wastewater and anticipates backlog for this business to be at record levels at the end of this year. Corrpro and United Pipeline Systems have supportive end markets in North America and the Middle East.

Chesterfield, Missouri-based Aegion is a diversified building and construction company, which provides infrastructure protection, proprietary technologies and facilities. It also offers services related to the rehabilitation and improvement of sewer, water, energy and mining piping systems.

Aegion currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the sector include United Rentals, Inc. ( URI ), Chicago Bridge & Iron Co. N.V. ( CBI ) and Fluor Corp. ( FLR ). All these stocks hold a Zacks Rank #2 (Buy).



AEGION CORP (AEGN): Free Stock Analysis Report

CHICAGO BRIDGE (CBI): Free Stock Analysis Report

FLUOR CORP-NEW (FLR): Free Stock Analysis Report

UTD RENTALS INC (URI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: AEGN , CBI , FLR , URI

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

62,892,165
  • $51.68 ▲ 5.79%
61,428,448
  • $16.55 ▲ 0.30%
45,503,932
  • $33.905 ▼ 1.61%
35,515,975
  • $3.96 ▲ 15.79%
32,482,798
  • $27.28 ▲ 0.04%
30,829,151
  • $6.29 ▼ 0.16%
30,175,330
  • $130.535 ▲ 0.20%
28,236,438
  • $55.465 ▼ 2.44%
As of 6/1/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com