Boston, MA 05/15/2014 (wallstreetpr) – American Water Works Company Inc (NYSE:AWK), which is among the largest publicly traded companies in the U.S., said on Wednesday that it is aiming to augment its revenues through expansion of wastewater operations and seeking additional military contracts.
Wastewater Focus
The company’s Chief Executive Officer, Susan Story said that the company delivers wastewater services to nearly 4% of its customers. She said that American Water Works Company Inc (NYSE:AWK) has adopted a new focus on expanding its wastewater operations. Out of the total 3.2 million customers, who are metered, 3.1 million are those of water, and just about 120,000 belong to wastewater. That is because most of the people assume that the company offers wastewater services only at places where they serve water.
Reportedly, the week marks the first week for Story in her role of CEO, to which she was promoted from her earlier profile of CFO on May 9. She replaces her predecessor Jeff Sterba, who is retiring from the organization. The company had earlier announced its plan to transition in its strategy in December.
Military Contracts
Additionally, the company is also aiming to garner more business from the U.S. military. At present, the company operates at 10 bases and won nearly $140 million capital project contracts at the sites previous year. One if the mentioned contracts include a wastewater treatment plant, which is one of the biggest projects in the company’s service line, according to Story. Till date, the U.S. Defense Department has placed over a dozen proposal requests, that totals $2 billion in value relating to the water projects. It is expected that the Department may further issue nearly $11 billion worth of contracts, by the end of the decade, as estimated by Story. The company has placed a bid on multiple proposals and anticipates to receive contracts out of those this year.
Last week, American Water Works Company Inc (NYSE:AWK) had reported its first quarter revenue at $681.9 million, reflecting an increase of 7.2% year-over-year and reported net income at $68.1 million.
