Great Lakes LLC, a unit of Great Lakes Dredge & Dock Corporation (GLDD), and Sons Materials, L.P., announced the sale of real estate owned by their joint venture, Amboy Aggregates (Amboy).
Great Lakes Dredge & Dock has a 50% interest in Amboy, which conducts sand dredging operation in New Jersey that distributes the dredged sand and other aggregates for use in road and building construction and for clean land fill.
Sale of the real estate, bought on Dec 31, 2014, includes approximately forty-one acres of land located in South Amboy, NJ. The sale is in sync with Great Lakes Dredge & Dock’s strategy of divesting non-core assets. The deal will allow the company to focus exclusively on its core dredging and environmental services business.
Great Lakes Dredge & Dock’s Dredging segment revenues increased 7.5% year over year to $167 million in third-quarter 2014, driven by higher domestic capital, maintenance and foreign capital revenues. Environmental & remediation segment’s revenues were at $37 million, rising 2.9% from the year-ago quarter.
Great Lakes Dredge & Dock expects strong fleet utilization in the fourth quarter of 2014. The company will utilize its fleet on the coastal protection project in New Jersey, the Freeport, TX Channel widening, Port Miami deepening and the Delaware River deepening projects.
The company also expects Superstorm Sandy projects to be put out to bid in the fourth quarter. Moreover, the company remains confident about the bid market into next year which will enable it to fill its backlog.
In addition, two of Great Lakes Dredge & Dock’s Middle East-based cutter suction dredges will commence dredging in early 2015 and will work through the third quarter of 2015 as part of a consortium on a project to deepen and widen the Suez Canal. The project is valued at $140 million. Three hopper dredges also continue to execute on the $32.5 million land reclamation job in Bahrain through early 2015, and work will continue on the Wheatstone project in Australia through the first quarter of 2015.
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services and also one of the largest providers of commercial and industrial demolition and remediation services, in the U.S., mainly in the Northeast. Great Lakes Dredge & Dock owns and operates the largest and most diverse fleet in the U.S. industry, comprising over 200 specialized vessels.
Great Lakes Dredge & Dock currently holds a Zacks Rank #2 (Buy). Better-ranked stocks in the sector include Tutor Perini Corporation (TPC), Armstrong World Industries, Inc. (AWI) and Boise Cascade Company (BCC). All these stocks carry a Zacks Rank #2 (Buy).
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