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AECOM reported Q3 revenue of $US2.07 billion and revenue net of other direct costs of $1.2 billion.
It is slightly less than Q3 2012, which had revenue of $2.1 billion and revenue net of other direct costs at $1.3 billion.
Operating income of $112 million and reported net income of $71 million were up 8.8% and 1.9% respectively.
Diluted earnings per share were up 11.1% at 70c.
Commenting on the results, AECOM chairman and chief executive officer John Dionisio said the company continued to perform well against its long-term objectives, with wins in emerging markets making up for losses in the once-strong American and Australian markets.
“In a challenging growth environment, we booked $1.9 billion in new wins, which contributed to our $16.8 billion in backlog,” Dionisio said.
“We also saw ongoing strength in emerging markets, such as Asia, Africa and the Middle East.”
Despite what Dionisio called a “strong execution” this quarter, further deterioration in AECOM’s mining business in Australia and slower conversion of backlog in the Americas is negatively impacting the company’s topline growth.
As a result, AECOM lowered its full-year fiscal 2013 earnings per share guidance range to $2.30-2.40.
The company expects its full-year effective tax rate to be 28%.
Cash flow from operations for the quarter was $96 million, while free cash flow, which includes capital expenditure of $12 million, totalled $84 million.
Year to date, AECOM generated $211 million in free cash flow and invested $312 million to repurchase its shares – a strategy which puts the company ahead of its target to return at least 50% of free cash flow to its shareholders in fiscal 2013 and 2014, according to AECOM president Michael Burke.
“We are on track to deliver our five-year cumulative free cashflow objective of between $1.3 and $1.8 billion,” Burke said.
To the balance sheet, as of June 30 AECOM had $508 million of total cash and cash equivalents, $1.1 billion of debt and $1.05 billion in committed bank facilities with $906.5 million in unused capacity.
