Aegion Updates On Strategic Actions: Will The Stock Recover?
Zacks Investment Research | Oct 03, 2017 03:12AM ET
Aegion Corporation (NASDAQ:AEGN) has announced updates on the company’s previous strategic actions and restructuring plans. Its focus on restructuring actions will drive results, while impact of the recent hurricanes and financial challenges will remain headwinds in the near term.
Details of Strategic Actions
On Aug 1, Aegion announced a series of strategic actions to generate more predictable and sustainable long-term earnings growth. Based on the strategic actions, the company has planned to divest the Corrosion Protection’s pipe coating and insulation business in Louisiana, due to persistence of mix issues and performance challenges on several cathodic protection system construction projects in the U.S. midstream pipeline market.
Also, per the plan, Aegion has approved to exit all non-pipe-related contract applications for the Tyfo Fibrwrap system in North America, restructure Corrosion Protection’s operations in Canada and implement cost-reduction actions as well. These restructuring initiatives are anticipated to generate annualized savings in excess of $15 million in 2018.
Aegion Corp Price
industry it belongs to. The company has gained around 22.5%, while the industry registered growth of 19.9%.
Aegion currently carries a Zacks Rank #4 (Sell).
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