WASHINGTON (dpa-AFX) - Tetra Tech Inc (TTEK) said Wednesday it has completed the strategic review of the Remediation and Construction Management ('RCM') segment and has decided to retain core environmental remediation, pipeline, solid waste, and utilities related activities, which together represent about one half of the RCM segment revenue in fiscal 2014.
Tetra Tech will exit all non-core construction markets that require lump-sum fixed-price bidding, which represented the remaining fifty percent of the RCM segment revenue, or fifteen percent of the company's total revenue in fiscal 2014.
Tetra Tech will continue to offer turn-key solutions for clients by acting as a construction manager or teaming with constructors.
At the beginning of fiscal 2015, the portions of the RCM segment that are core to the company's business will be moved to the two front-end focused segments. Substantially all non-core portions of the RCM segment will be closed, sold, or completed in calendar 2014. Revenue, net of subcontractor costs, will be reduced by about 5 to 10 percent from fiscal 2014, through these actions.
After exiting non-core activities, the company plans to report results through two operating segments.
Tetra Tech reaffirmed its previous EPS guidance for the fourth quarter fiscal 2014. RCM financial results are expected to have no significant net impact to reported GAAP EPS in the fourth quarter.
Tetra Tech, based in Pasadena, California, provides consulting, engineering, construction management, and technical services.
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