The headquarters of SNC Lavalin is seen Thursday, November 6, 2014 in Montreal. SNC-Lavalin Group Inc. reported a loss in its first quarter compared with a profit a year ago as its revenue edged lower.THE CANADIAN PRESS/Paul Chiasson

SNC-Lavalin to step back from 15 countries, swear off fixed-price bids in mining

The company is undergoing an organizational revamp

The head of SNC-Lavalin Group Inc. said it will scale down its operations in 15 countries and swear off bidding on fixed-price contracts in the mining industry as it reported a loss in its latest quarter.

“We remain confident that we can deliver our 2019 outlook, despite being disappointed with our first-quarter performance,” Neil Bruce said in a statement Thursday.

“We will be focusing on our core geographies and are removing unprofitable revenues across 15 countries where we have sub-scale operations.”

“We also stopped bidding on lump sum EPC (earnings, procurement and construction) projects, as going forward we will be undertaking lump sum EPC work in infrastructure and oil and gas only in our core regions where we have strong capabilities,” Bruce added.

SNC-Lavalin is firmly rooted in both construction and engineering, exposing it to potentially higher margins, but also the cost overruns and fixed-price contracts that can plague the world of builders.

Bruce noted the company is undergoing an organizational revamp, combining its oil and gas business with its mining unit as part of a cost-reduction program under chief operating officer Ian Edwards, who was appointed in late January.

The engineering and construction firm said it lost $17.3 million or 10 cents per share for the quarter ended March 31. That compares with a profit of $78.1 million or 44 cents per share in the first quarter of last year.

Revenue totalled $2.36 billion, down from $2.43 billion a year ago.

On an adjusted basis, SNC said it earned 21 cents per share for the quarter compared with an adjusted profit of 77 cents per share a year earlier.

The results included an adjusted loss of eight cents in its engineering and construction business, while its capital investments business earned 29 cents per share in its most recent quarter.

That compared with an adjusted profit of 51 cents from the engineering and construction side a year ago, while the capital investments business earned 36 cents per share.

READ MORE: SNC-Lavalin’s court loss shifts spotlight to Trudeau’s new attorney general

READ MORE: Five things in Wilson-Raybould’s written evidence on the SNC-Lavalin

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

New hospice programs aim eyed for at-home patients and caregivers

Abbotsford Hospice Society set to launch day program for people living at home with terminal illness

Abbotsford Arts Council seeks submissions for 2020 exhibits

Kariton Art Gallery hosts 10 to 12 shows each year

Abbotsford man crafts one-of-a-kind metal sculptures at Green Lake home

‘I am in an office all day and this is my way to get away from all of that’

SLIDESHOW: Symphony in the Park

Free concert at Mill Lake featured Abbotsford’s young orchestra talent

VIDEO: Abbotsford police arrest man suspected of using pepper-spray against another man

Police cruisers collide in pursuit of suspect fleeing on a stolen bicycle

QUIZ: How much do you remember about Woodstock?

Weekend music festival in Bethel, New York, was held 50 years ago

U16 B.C. fastpitch team named national champs

Girls went undefeated at national tournament in Calgary

Advocates ‘internationalize’ the fight to free Raif Badawi from Saudi prison

Raif Badawi was arrested on June 17, 2012, and was later sentenced to 1,000 lashes and 10 years in jail for his online criticism of Saudi clerics

Canadian entrepreneurs turning beer byproduct into bread, cookies and profits

Some breweries turn to entrepreneurs looking to turn spent grain into treats for people and their pets

Canada ‘disappointed’ terror suspect’s British citizenship revoked

Jack Letts, who was dubbed “Jihadi Jack” by the U.K. media, has been detained in a Kurdish prison for about two years

Chrystia Freeland condemns violence in Hong Kong, backs right to peaceful assembly

There have been months of protests in the semi-autonomous region

Most Read