The net income attributable to Aecom for the second quarter was US$49m, representing a decrease of 15% from net income of US$58m. Operating income for the second quarter decreased 16% from last year to US$73m.
Aecom’s gross revenue includes a significant amount of pass-through costs and so the company has also presented its revenue, net of other direct costs, was US$1.3bn.
“During the quarter, we saw strength in our professional technical services segment driven by accelerated growth in key end markets and regions, including emerging and natural resources as well as Asia,” said said John M. Dionisio, Aecom chairman and chief executive officer. “This growth was enabled by investments that we have made to enhance our capabilities across Aecom. “Unfortunately, this strength was overshadowed by challenges in our Management Support Services segment.”
For the first six months of fiscal year 2012, Aecom reported net income attributable to Aecom of US$97m, a decrease of 15% compared to the same period last year. Operating income for the first six months of fiscal 2012 decreased 16% year over year to US$150m. For the first six months of fiscal year 2012, the company's revenue, net of other direct costs, increased 1% to US$2.5bn, while revenue was US$4bn — 4% higher than the same period last year.
Aecom reported an order backlog of of US$16bn in its results for the second quarter of its 2012 fiscal year. “Our new wins accelerated sequentially, topping US$2.4bn, while backlog also was up sequentially to US$16bn — a 4% increase year over year,” said Aecom president Michael Burke. “These metrics demonstrate the underlying strength of our business as clients increasingly turn to Aecom for our integrated service platform and global expertise. This demand, coupled with a broad-based improvement in profitability during the second half, will allow us to achieve our target of generating free cash flow roughly equal to net income this year.”
In addition to providing consolidated financial results, Aecom reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS). The PTS segment delivers planning, consulting, architecture and engineering design, and programme and construction management services to institutional, commercial and public sector clients worldwide.
For the second quarter of fiscal year 2012, the PTS segment reported revenue of US$1.8bn and revenue, net of other direct costs, of US$1.2bn, compared to revenue of US$1.6bn and revenue, net of other direct costs, of US$1.1bn in the same period last year. This represents a 9% increase in revenue and a 2% increase in revenue, net of other direct costs. PTS segment operating income was US$91m compared to US$92m last year.
The MSS segment provides facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government. For the second quarter of fiscal year 2012, the MSS segment reported revenue of US$209.8m and revenue, net of other direct costs, of US$126.4m, compared to revenue of US$290.8m, and revenue, net of other direct costs, of US$148.6m for the same period during fiscal year 2011. This represents a 28% decrease in revenue and a 15% decrease in revenue, net of other direct costs. In addition, the MSS segment reported operating income of US$2m compared to US$19m for the same period during fiscal year 2011.
As of 31 March 2012, Aecom had US$466m of total cash and cash equivalents, US$1.3bn of debt and US$1.05bn in committed bank facilities with US$807m in unused capacity. Cash flow from operations totalled US$11m in the quarter.