SNC-Lavalin Group Inc. (SNC), Canada’s biggest engineering company, said first-quarter profit fell 19 percent as it booked provisions on two contracts.
Net income declined to C$53.6 million ($53.2 million), or 35 cents a share, from C$66.3 million, or 44 cents, a year earlier, Montreal-based SNC-Lavalin said today in a statement. Revenue rose 6.3 percent to C$1.9 billion, in line with the average estimate in a Bloomberg survey of five analysts.
Chief Executive Officer Robert Card is trying to reshape the company after a corruption scandal involving his predecessor that led to a fraud investigation and investor lawsuits. Under Card, who took over Oct. 1, SNC-Lavalin has hired a compliance officer, appointed a new chief financial officer, and a president for the company’s newly created resources and environment unit.
Results in the quarter include C$32 million in additional costs from an undisclosed infrastructure project, as well as C$17 million in provisions for costs in connection with a mining contract that was suspended, SNC-Lavalin said. The provisions led to operating losses in two of the company’s units: infrastructure and environment, and mining and metallurgy.
SNC-Lavalin fell less than 1 percent to C$43.45 in Toronto yesterday. The stock has gained 7.8 percent this year.
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