News Release

AECOM Reports Strong Net Income, Operating Income, Backlog for Second Quarter of Fiscal Year 2008
  • Second-quarter diluted earnings per share of 35 cents, up 30% from the same period last year.
  • Net income for second quarter increased 69% year over year to $35.8 million.
  • Operating income for second quarter increased 55% year over year to $59.0 million.
  • Revenue for second quarter increased 7% year over year to $1.2 billion.
  • Revenue, net of other direct costs increased 27% year over year to $750.8 million.
  • Backlog at March 31, 2008, increased 20% year over year to $7.1 billion.
  • Diluted earnings-per-share outlook raised to $1.30 to $1.34 for full fiscal year 2008.

LOS ANGELES--(BUSINESS WIRE)--May 8, 2008--AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today its financial results for the second quarter of fiscal year 2008, which ended March 31, 2008.

AECOM reported net income of $35.8 million for the second quarter, or diluted earnings per share (EPS) of 35 cents. These results represent an increase of 69% over net income of $21.2 million for the same period last year. Operating income for the second quarter increased 55% year over year to $59.0 million. For the first six months of fiscal year 2008, AECOM reported net income of $65.3 million and operating income of $103.5 million, an increase of 40% and 52%, respectively.

Second-quarter revenue increased to $1.2 billion, 7% higher than the second quarter of fiscal year 2007. AECOM's gross revenue includes a significant amount of pass-through costs and, therefore, revenue, net of other direct costs, which is a non-GAAP measure, also provides a valuable perspective on its business results. AECOM's revenue, net of other direct costs for the three months ended March 31, 2008, increased 27% compared to the same period last year, to $750.8 million. For the first six months of fiscal 2008, AECOM reported revenue of $2.2 billion and revenue, net of other direct costs of $1.4 billion, an increase of 11% and 31%, respectively.

"Our second-quarter results were marked by strong global growth," said John M. Dionisio, AECOM president and chief executive officer. "During the quarter, we saw continued strength in our U.S. business, while our non-U.S. revenue continued to increase - our non-U.S. revenue now represents 53% of our total revenue."

"The global infrastructure market continues to fuel a solid demand for our services," said Dionisio. "Projects such as our work in support of Abu Dhabi's Ain Khalid Commercial Avenue project, the Los Angeles International Airport Capital Improvement Program, and evolving work for the Libyan Housing and Infrastructure Board highlight the breadth and diversification of our success."

Business Segments

In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS).

Professional Technical Services

The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and government clients worldwide.

For the second quarter of fiscal 2008, the PTS segment reported revenue of $955.1 million and operating income of $60.6 million, compared to revenue of $843.2 million and operating income of $39.4 million for the same period during fiscal year 2007. This represents a 13% increase in revenue and a 54% increase in operating income year over year. PTS revenue, net of other direct costs, increased 27% for the three months ended March 31, 2008, to $710.6 million.

Management Support Services

The MSS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government.

For the second quarter of fiscal year 2008, the MSS segment reported revenue of $209.1 million and operating income of $14.0 million, compared to revenue of $240.5 million and operating income of $8.3 million for the same period during fiscal year 2007. This represents a 13% decrease in revenue and a 68% increase in operating income year over year. Segment results for the quarter were positively affected by the release of key task orders and the resolution of government contract negotiations. MSS revenue, net of other direct costs, increased 40% for the three months ended March 31, 2008, to $40.1 million.

Outlook

AECOM announced backlog totaling $7.1 billion at March 31, 2008, a 20% increase year over year.

"AECOM continued to deliver strong results across all of our end markets and geographies during the second quarter," said Michael S. Burke, AECOM executive vice president, chief corporate officer and chief financial officer. "Moreover, the $1.2-billion increase in our year-over-year backlog indicates continued strength and solid momentum in our end markets."

Dionisio cited the five acquisitions that AECOM has announced year to date as an indicator of the company's execution on its strategic plan. "Our ability to complement our organic growth with key acquisitions positions us well to leverage the opportunities that we see in the global infrastructure market."

Based on its results through the first half of the fiscal year, as well as its strong backlog, AECOM has raised its EPS outlook for fiscal year 2008 to $1.30 to $1.34.

AECOM is hosting a conference call today at 11 a.m. EDT, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Interested parties can listen to the conference call and view accompanying slides via webcast on the Internet at www.aecom.com. The webcast will be available for replay following the call.

About AECOM

AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental and energy. With more than 35,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that enhance and sustain the world's built, natural, and social environments. AECOM serves clients in more than 60 countries and had revenue of $4.2 billion during fiscal year 2007. More information on AECOM and its services can be found at www.aecom.com.

Forward-Looking Statements: All statements in this press release other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.

                    AECOM Technology Corporation
             Condensed Consolidated Statements of Income
                (in thousands, except per share data)

                         Three Months Ended       Six Months Ended
                       ----------------------  ----------------------
                       March 31,   March 31,   March 31,   March 31,
                          2008        2007        2008        2007
                       ----------  ----------  ----------  ----------

Revenue                $1,164,121  $1,083,709  $2,244,371  $2,022,258
  Other direct costs      413,369     494,227     818,033     929,642
                       ----------  ----------  ----------  ----------
  Revenue, net of
   other direct costs     750,752     589,482   1,426,338   1,092,616
  Cost of revenue,
   net of other
   direct costs           381,357     305,611     730,351     560,326
                       ----------  ----------  ----------  ----------
Gross profit              369,395     283,871     695,987     532,290

Equity in earnings of
 joint ventures             4,008       2,219       6,850       3,636
General and
 administrative
 expenses                 314,444     248,146     599,346     467,974
                       ----------  ----------  ----------  ----------
  Income from
   operations              58,959      37,944     103,491      67,952

Minority interest in
 share of earnings          4,798       3,648       6,077       5,234
Other expense                 813          --       1,628          --
Gain on the sale of
 equity investment             --          --          --      11,286
Interest income
 (expense) and other,
 net                        2,061      (2,228)      4,309      (3,303)
                       ----------  ----------  ----------  ----------
  Income before
   income tax expense      55,409      32,068     100,095      70,701

Income tax expense         19,580      10,870      34,773      23,983
                       ----------  ----------  ----------  ----------
Net income             $   35,829  $   21,198  $   65,322  $   46,718
                       ==========  ==========   =========  ==========

Net income
 allocation:
  Preferred stock
   dividend            $       39  $       87  $       95  $      116
  Net income
   available for
   common
   stockholders            35,790      21,111      65,227      46,602
                       ----------  ----------  ----------  ----------
  Net income           $   35,829  $   21,198  $   65,322  $   46,718
                       ==========  ==========  ==========  ==========

Net income per share:
  Basic                $     0.36  $     0.37  $     0.65  $     0.82
                       ==========  ==========  ==========  ==========
  Diluted              $     0.35  $     0.27  $     0.63  $     0.60
                       ==========  ==========  ==========  ==========

Weighted average
 shares outstanding:
  Basic                   100,571      56,331     100,108      56,965
  Diluted                 103,454      77,964     103,240      78,500
                     AECOM Technology Corporation
               Balance Sheet and Cash Flow Information
                            (in thousands)

                                   March 31, 2008   September 30, 2007
                                 ------------------ ------------------
Balance Sheet Information:
  Cash and cash equivalents      $         217,675  $          216,911
  Working capital                          546,554             597,655
  Working capital, net of cash
   and cash equivalents                    328,879             380,744
  Total debt                                51,548              47,950
  Total stockholders' equity             1,387,138           1,278,485

                                           Six Months Ended
                                 -------------------------------------
                                   March 31, 2008     March 31, 2007
                                 ------------------ ------------------
Cash Information
   Net cash provided by
    operating activities         $           3,267  $           53,730
                     AECOM TECHNOLOGY CORPORATION
                         Reportable Segments
                            (in thousands)

                         Professional Management
                          Technical    Support
                           Services    Services  Corporate    Total
                         ------------ ---------- --------- -----------
Three Months Ended March
 31, 2008:
Revenue                  $   955,067  $ 209,054  $      -  $1,164,121
Other direct costs           244,436    168,933               413,369
                         ------------ ---------- --------- -----------
Revenue, net of other
 direct costs                710,631     40,121         -     750,752
Cost of revenue, net of
 other direct costs          359,944     21,413         -     381,357
                         ------------ ---------- --------- -----------
Gross profit                 350,687     18,708         -     369,395
Gross profit as a % of
 revenue                        36.7%       8.9%        -        31.7%
Gross profit as a % of
 revenue, net of other
 direct costs                   49.3%      46.6%        -        49.2%
Equity in earnings of
 joint ventures                2,676      1,332         -       4,008
General and
 administrative expenses     292,809      6,052    15,583     314,444
Operating income              60,554     13,988   (15,583)     58,959
Segment assets             2,246,431    198,919   256,583   2,701,933

Three Months Ended March
 31, 2007:
Revenue                  $   843,218  $ 240,491  $      -  $1,083,709
Other direct costs           282,359    211,868               494,227
                         ------------ ---------- --------- -----------
Revenue, net of other
 direct costs                560,859     28,623         -     589,482
Cost of revenue, net of
 other direct costs          289,830     15,781         -     305,611
                         ------------ ---------- --------- -----------
Gross profit                 271,029     12,842         -     283,871
Gross profit as a % of
 revenue                        32.1%       5.3%        -        26.2%
Gross profit as a % of
 revenue, net of other
 direct costs                   48.3%      44.9%        -        48.2%
Equity in earnings of
 joint ventures                  681      1,538         -       2,219
General and
 administrative expenses     232,264      6,035     9,847     248,146
Operating income              39,446      8,345    (9,847)     37,944
                     AECOM TECHNOLOGY CORPORATION
                         Reportable Segments
                            (in thousands)

                         Professional Management
                          Technical    Support
                           Services    Services  Corporate    Total
                         ------------ ---------- --------- -----------
Six Months Ended March
 31, 2008:
Revenue                  $ 1,848,508  $ 395,863  $      -  $2,244,371
Other direct costs           489,352    328,681               818,033
                         ------------ ---------- --------- -----------
Revenue, net of other
 direct costs              1,359,156     67,182         -   1,426,338
Cost of revenue, net of
 other direct costs          689,181     41,170         -     730,351
                         ------------ ---------- --------- -----------
Gross profit                 669,975     26,012         -     695,987
Gross profit as a % of
 revenue                        36.2%       6.6%        -        31.0%
Gross profit as a % of
 revenue, net of other
 direct costs                   49.3%      38.7%        -        48.8%
Equity in earnings of
 joint ventures                3,708      3,142         -       6,850
General and
 administrative expenses     561,907     11,742    25,697     599,346
Operating income             111,776     17,412   (25,697)    103,491
Segment assets             2,246,431    198,919   256,583   2,701,933

Six Months Ended March
 31, 2007:
Revenue                  $ 1,597,087  $ 425,171  $      -  $2,022,258
Other direct costs           553,181    376,461               929,642
                         ------------ ---------- --------- -----------
Revenue, net of other
 direct costs              1,043,906     48,710         -   1,092,616
Cost of revenue, net of
 other direct costs          532,575     27,751         -     560,326
                         ------------ ---------- --------- -----------
Gross profit                 511,331     20,959         -     532,290
Gross profit as a % of
 revenue                        32.0%       4.9%        -        26.3%
Gross profit as a % of
 revenue, net of other
 direct costs                   49.0%      43.0%        -        48.7%
Equity in earnings of
 joint ventures                 (104)     3,740         -       3,636
General and
 administrative expenses     435,943     11,806    20,225     467,974
Operating income              75,284     12,893   (20,225)     67,952

CONTACT: AECOM Technology Corporation
Paul Gennaro, 212-973-3167
SVP & Chief Communications Officer
paul.gennaro@aecom.com

SOURCE: AECOM Technology Corporation