GUELPH, Ont. – Armtec Infrastructure Inc. (TSX:ARF), a construction and infrastructure company, says it has appointed chief operating officer Mark Anderson as its new president and CEO.
Anderson replaces Charles Phillips, who has left the Guelph, Ont. company to pursue other interests.
In its last quarter, the company posted a huge net loss of $135.7 million after taking a big non-cash impairment charge on its books.
That compared with net income of $7.5 million in the same 2010 quarter.
The company said the loss was largely due to a non-cash impairment charge of $140 million recognized against certain property plant and equipment, goodwill and other intangible assets.
Revenue fell to $123.3 million from from $128.4 million.
The Ontario-based company, which manufacturers and sells a comprehensive range of infrastructure and engineered construction products, also struck a $125 million financing deal with Brookfield Asset Management this summer.
Earlier this month, Armtec announced it had received a contract worth $40 million over nine years from BC Hydro. Armtec will be exclusive supplier of concrete utility vaults and associated products to British Columbia’s main electric utility
The company’s shares, which traded above $16 in May, began plummeting in June after it announced a widening of its first-quarter loss and the planned suspension of a 40-cent per share dividend.
They closed Friday on the Toronto Stock Exchange at $1.73, up one cent.
Armtec faces a class-action lawsuit alleging the company broke securities laws when it instituted the dividend, later to cancel it after it became unsupportable by earnings.
The suit, filed in Ontario Superior Court on behalf of investors who bought shares between March 30 and June 8, alleges that Armtec should have known when it raised capital in the public market that it did not have sufficient earnings to pay dividends.
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