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BRIEF-Aegion provides update on strategic actions, other Q3 activities

Published 03/10/2017, 09:13 am
Updated 03/10/2017, 09:20 am
© Reuters.  BRIEF-Aegion provides update on strategic actions, other Q3 activities

Oct 2 (Reuters) - Aegion Corp AEGN.O :

* Provides an update on strategic actions and other third-quarter activities

* Plan to divest corrosion protection platform's pipe coating and insulation business in Louisiana

* Total annual savings from all restructuring activities and other cost reduction initiatives are estimated to be in excess of $17 mln

* Implementation of cost reduction initiatives across company

* Company performed an impairment assessment of long-lived assets and goodwill for Fyfe reporting unit

* Total annual savings from all restructuring activities and other cost reduction initiatives expected to be fully realized in 2018

* Will incur a non-cash, pre-tax impairment charge of approximately $85 mln for long-lived intangibles and goodwill in Q3 of 2017

* Total cash costs associated with restructuring actions are estimated to be $12 mln to $15 mln

* Approximately $3 million of annual savings are also anticipated to be realized from reduction in annual amortization of intangibles in 2018

* Annual savings are expected to be between $2 mln and $3 mln in Australia and Denmark, with cash restructuring costs of $3 mln to $4 mln

* Performance issues in portions of business, impact on operations from hurricanes are expected to impact Q3 operating results by $0.10/diluted share

* Will be difficult to recover in Q4 from impact of recent hurricanes

* Will be difficult to recover from financial challenges experienced in Q3 in Denmark, Australia and Fyfe North America

* Also completed a detailed assessment of infrastructure solutions businesses in Australia and Denmark in Q3

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* Restructuring of corrosion protection platform's operations in Canada

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