Insituform Technologies, LLC - a unit of
) - has secured a wastewater pipelines rehabilitation contract
worth $10 million from the City of Baltimore, Maryland.
Insituform, a global leader in the development and installation
of proprietary technologies and services for rehabilitating
sewer, water and other underground piping systems, will use its
Cured-in-Place Pipe (CIPP) technology to perform the wastewater
As per the contract, Insituform will install nearly 7 miles of
small and medium diameter CIPP in wastewater pipelines in the
city, out of which 1 mile will be for medium-diameter trunk
Insituform has prior experience of working in this field in the
City of Dallas. Nevertheless, the task is challenging as a large
bypass system and effective traffic control in the city center
and Inner Harbor areas would be required. However, the unit's
expert team is expected to overcome the challenge successfully.
Including the aforementioned deal, Aegion has secured contracts
to the tune of around $56.9 million from the City of Baltimore
since Sep 2012. The project is expected to begin in mid 2014 and
will be completed after 16 months.
Aegion reported fourth-quarter 2013 adjusted earnings from
continuing operations of 40 cents per share, marking a
year-over-year fall of 2%.The decrease was owing to disappointing
performances by its Energy and Mining as well as Commercial and
For full-year 2014, Aegion forecasts earnings per share in the
range of $1.50 to $1.70. Cash flow from operations is expected to
be $100-$110 million. The company anticipates return on invested
capital in the band of 7%-8%.
Aegion is expected to benefit from Brinderson's contribution,
vertical integration, the expertise of veteran engineers and
intellectual property protections across the value chain.
Continued growth in the corrosion engineering as well as cathodic
projection and linings business will also boost profitability.
Moreover, strategic investments and backlog will be accretive to
Aeigon. A favorable market outlook supporting water and
wastewater will also drive growth. However, Aegion remains
cautious about the pipe coating market.
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). Some
better-ranked stocks in the same sector include
CaesarStone Sdot-Yam Ltd.
). While CaesarStone sports a Zacks Rank #1 (Strong Buy), USG
Corporation and Wolseley have a Zacks Rank #2 (Buy).
AEGION CORP (AEGN): Free Stock Analysis
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WOLSELEY -ADR (WOSYY): Get Free Report
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