Reuters: Global Markets: Aecom shares jump on higher free cash flow

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Aecom shares jump on higher free cash flow Aug 7th 2012, 15:25 Tue Aug 7, 2012 11:25am EDT (Reuters) - Aecom Technology Corp's (ACM.N) third-quarter profit missed analysts' expectations by a cent, but the engineering and design company generated strong free cash flow, sending its shares up 19 percent. The company said it had $398 million of total cash and cash equivalents and $1.1 billion of debt, equating to its lowest net debt in seven quarters, as of June 30. "The quarter had fairly low expectations going in and the most positive thing we saw was material improvement in the company's ability to generate cash, which has been a focus area for investors," said Robert W. Baird analyst Andrew Wittmann. The Los Angeles-based Aecom generated a free cash flow of $186 million in the third quarter, compared with just $1 million a year earlier. Aecom provides architectural and engineering design, and program and construction management services for highways, airports, government and commercial buildings. Management support services segment, which provides direct support services for U.S. Army equipment, has been a drag on earnings in the recent past quarters. Revenue at the segment, which provides direct support services for the U.S. Army, fell 9 percent to $248.7 million. The segment accounted for 12 percent of total revenue of $2.10 billion. The net income fell to $69.4 million, or 63 cents per share, from $73.8 million, or 62 cents per share, a year earlier. The number of outstanding shares fell 7 percent in the third quarter. Analysts on average had expected earnings of 64 cents per share on revenue of $2.09 billion, according to Thomson Reuters I/B/E/S. Aecom shares, which have fallen by more than a third after touching a year-high in February, were trading up 17 percent at $18.77 on the New York Stock Exchange. (Reporting by Megha Mandavia in Bangalore; Editing by Maju Samuel, Supriya Kurane) Link this Share this Digg this Email Reprints

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