AECON GROUP INC 11 Revenue and operating proft loss by segment for the years ended December 31 2012 and 2011 are set out in the table below an d discussed in the section Reporting Segments For the year ended December 31 millions Revenue Operating proft loss 2012 2011 2012 2011 Infrastructure 18971 19047 595 649 Industrial 10140 9183 579 302 Concessions 422 812 251 359 Other costs and eliminations 1 65 80 327 305 Consolidated 29468 28962 1098 1005 1 The Other costs and eliminations category includes corporate and other costs that are not directly a llocable to segments and also includes intersegment eliminations Revenue for the year ended December 31 2012 increased by 51 million compared to the same period in 2011 Strong growth in volume in Infrastructures Mining operations and the ramp up of new Industrial projects were the main contributors to the increased revenue in 2012 These increases were partially offset by lower revenue in Social Infrastructure due to the refocusing of buildings operations including reduced bidding activity on large stand alone commercial and social infrastructure buildings projects and lower volume in Infrastructures Transportation operations Revenues also decreased in Concessions due to the sale of Aecons interest in the operator of the Cross Israel Highway in the third quarter of 2011 For the year ended December 31 2012 operating proft increased by 93 million compared to the same period in 2011 However the comparison of yearoveryear results was signifcantly impacted by gains from the sale of assets and investments as well as operating profts from operations in Israel prior to the sale of those operations in September 2011 Included in the results for 2011 was operating proft of 68 million from operations in Israel and an 115 million gain from the sale of these operations In addition gains from the sale of assets in 2011 were 44 million compared to 09 million in 2012 After excluding gains from the sale of assets and investments and operating profts from operations in Israel in 2011 operating proft for 2012 was 311 million higher than last year Favourably impacting operating profts for the year ended December 31 2012 was an increase in gross proft of 409 million compared to the same period in 2011 Gross proft for the year ended December 31 2012 increased in both the Infrastructure and Industrial segments In Infrastructure the increase is due primarily to a signifcantly higher gross proft contribution from Mining operations refecting ongoing growth in the oil sands as well as from improvements in Utilities operations while the improvements in the Industrial segment resulted from improved margins in the resources and commodity mining sector and from its Western Canada operations Partly offsetting these improvements was lower gross proft from Infrastructures Transportation and Heavy Civil operations and from the Concessions segment where the release of certain contingencies related to the Quito airport project following substantial completion of construction in the fourth quarter were not suffcient to offset the reduction in gross proft due to the sale in the third quarter of 2011 of Aecons interest in the operator of the Cross Israel Highway The overall improvement in gross proft was partially offset by an 184 million increase in MGA in 2012 compared to 2011 as MGA as a percentage of revenue increased from 48 to 53 The increase in MGA in 2012 is driven primarily by a number of signifcant initiatives to improve overall operating margins by investing in Aecons risk management and project execution capabilities as well as increases in business development and bid costs particularly in Western Canada and higher information technology and incentive costs