AECOM ends Russia operations after the Russian invasion of Ukraine; the move may cost the company as much as $50 million.
AECOM, an infrastructure consulting firm based in Dallas, Texas, announced in a prepared statement it is immediately exiting its business operations in Russia.
“We support the people of Ukraine who are facing tremendous suffering as a result of Russia’s unlawful invasion,” says Troy Rudd, AECOM’s CEO. “Russia’s actions are inconsistent with AECOM’s values and have compromised the business environment for AECOM, our clients and our joint activities in Russia. For AECOM, the impact of these actions is particularly unfortunate for our colleagues from our Russia business, and we have taken steps to provide them support during this transition. As always, our priority continues to be ensuring the safety, security and well-being of our teams throughout the region.”
The financial contribution to AECOM from its business related to Russia is not material. As a result, the company reiterated its guidance for all financial metrics for fiscal 2022 and its long-term fiscal 2024 financial targets as provided on its first quarter fiscal 2022 earnings call.
AECOM will impair the assets of its Russia-related business and expects to incur a one-time pre-tax expense of $40 million to $50 million in the fiscal second quarter. This impact will be excluded from adjusted earnings. The cash impact from this action is expected to approximate $10 million.