AECOM [ACM], the international infrastructure company that is preparing its exit from contracting for the U.S. Energy Department, on Tuesday reported record annual revenue of almost $20.2 billion for fiscal 2019.
The annual revenue is up 2% from $20.15 billion in fiscal 2018, according to AECOM. But the company suffered a net loss of $266 million, or $1.66 per diluted share – compared to earnings of $440 million, or $2.75 per diluted share, in the prior year.
Restructuring expenses and problems with a self-construction business factored into the loss, AECOM said in its press release.
The Los Angeles-based company issued its financial results for its fourth quarter and 2019 fiscal year ended Sept. 30 before market open this morning.
AECOM’s quarterly revenue was $5.1 billion, down about 4% from $5.3 billion on a year-over-year basis. The company posted a net loss for the quarter of $475 million, or $3.01 per diluted share. That compares to net earnings of $84 million, or $0.52 per diluted share, for the fourth quarter of fiscal 2018.
The company said last month it has a deal to sell its Management Services business to an affiliate of New York City-based investment firms American Securities and Lindsay Goldberg for about $2.4 billion.
Management Services revenue for the fourth quarter was $1.1 billion, up 7% from $1 billion a year ago. Yearly revenue for the business was $4.1 billion, 11% better than last year’s $3.9 billion.
The sale of the business, which handles major contracts with the U.S. Energy Department and the Department of Defense, should close by the end of January. That enables AECOM to divest the business about six months earlier than its original plan to spin it off via an initial public offering. The sale is part of a larger strategy to “de-risk and simplify” its structure, including exiting operations in about 30 nations, according to the press release.