10:49 AM EDT, 04/26/2024 (MT Newswires) -- Cematrix Corporation ( CTXXF ) , a North American manufacturer and supplier of technologically advanced cellular concrete products, was at last look down 2.5% on Friday -- having been down nearer 5% earlier -- as it announced a drop in its short term backlog, while also announcing $7.6 million in new contracts won.

The company in Friday's statement said it is removing approximately $17 million from its backlog due to an "unusual reduction in scope" of a $32 million tunnel project that was previously awarded by Letter of Intent in 2020. It noted this tunnel project is currently underway, with the Cematrix ( CTXXF ) portion of it now scheduled to proceed later this year and be completed in 2025. With this change in scope and the subsequent reduction in the backlog associated with this change and factoring in new project wins and after deducting sales to the end of the first quarter, CEMATRIX'S ( CTXXF ) backlog is now $80.6 million.

"While we are disappointed in the reduction in scope of this one tunnel project that arose from using a smaller diameter tunnel boring machine than was originally intended and approved by the owner, we are still pleased that the tunnel project is going ahead later this year with a long time and important customer of CEMATRIX ( CTXXF ), through Pacific International Grout Company, our US tunnel grouting subsidiary," said Jeff Kendrick, President and CEO of CEMATRIX ( CTXXF ). "This assumes that the contract is finalized in the same form and amount that is presently being negotiated. Although the reduction affects our short-term backlog totals that are related mainly to the 2025 fiscal year, management believes that it will have minimal effect on the current year and will not affect the continued growth of our markets throughout North America."

On the new contracts, Cematric said they include a $1.9 million load reducing fill project and a $1.4 million dollar tunnel project, both in the US. The majority of these two projects will be completed this year. The rest of the new contracts (approximately $4.3 million) will also be completed in 2024.

Price: 0.39, Change: -0.02, Percent Change: -4.94