SNC posts lower first-quarter profit, announces new strategic plan

Thu May 2, 2013 9:20am EDT
 
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TORONTO (Reuters) - SNC Lavalin Group Inc (SNC.TO: Quote), the Canadian construction and engineering company, reported lower first-quarter profit on Thursday and announced a new strategic plan that will include focusing on growth in its resources segment.

Net income was C$53.6 million ($53.17 million), or 35 Canadian cents per share, down from C$66.3 million, or 44 Canadian cents per share, a year earlier.

Excluding infrastructure concession investments, its investment and financing unit, profit was C$18.6 million during the quarter, lower than the C$41.2 million reported for the same period a year ago.

Revenues rose by 6.3 percent to C$1.9 billion.

Results missed the 49 Canadian cents per share adjusted that analysts had been expecting, according to Thomson Reuters I/B/E/S.

SNC, one of the world's largest engineering companies, said its new strategy will also focus on business growth across North and South America, and better management of its portfolio of assets. That will include exiting investments at maturity, potentially disposing non-core assets and reducing equity stake in large investments in the medium term.

(Editing by Kenneth Barry)

 
A Royal Canadian Mounted Police (RCMP) officer walks past the headquarters of SNC Lavalin in Montreal April 13, 2012. REUTERS/Christinne Muschi