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

Missing woman last seen downtown Chilliwack in late April

Family concerned for Rebecca Lynne Sackley’s well-being

Chilliwack prolific offender arrested after four months on the lam

B.C.-wide warrant issued for David Allen Geoghegan in January

Two week lock down lifted for Kent Institution

A search at the prison found nearly 26 grams of hashish and a cellphone

Harrison Hot Springs to partner with Sts’ailes for reconciliation event

The event will be funded by a grant meant to build dialogue between cities and local First Nations

Ryan McMahon brings new tunes to Acoustic Emporium in Chilliwack

Album is ‘snapshot of a soon-to-be middle-aged man trying to beat the blues,’ says singer-songwriter

Kelowna toddler suffers cracked skull after fall from balcony

Neighbour who found the two-year-old boy said he has a bump the size of a golf ball on his head

RCMP target speeders between Abbotsford and Surrey in month-long blitz

Officers throughout the province launch Swoop campaign

RCMP probe if teen was intentionally hit with ski pole by mystery skier on B.C. mountain

The incident happened on March 20 on Grouse Mountain. Police are urging witnesses to come forward

Support growing for orphaned Okanagan child after father dies in highway crash

Family thanks emergency crews for assistance in traumatic incident

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Baby boom seniors putting pressure on B.C. long-term care: report

B.C. leads Canada in growth of dementia, dependence on care

UPDATED: B.C. man says he’ll take People’s Party lawsuit as far as he can

Federal judge shut down Satinder Dhillon’s ‘nonsensical’ motion to bar use of PPC name in byelection

Coquitlam RCMP release video in search for witness to crash that killed girl, 13

Witness is described as a slim Asian man with short, black hair, no facial hair and wearing glasses

Most Read