SNC-Lavalin slashes full-year profit forecast
(Reuters) - Canada's SNC-Lavalin Group Ltd (SNC.TO: Quote) slashed its full-year profit forecast after it took a nearly C$75 million charge due to previously signed contracts in North Africa and in the hospital and road sectors that turned unprofitable.
SNC, one of the world's largest construction and engineering companies, now expects net income for 2013 to be C$10 million to C$50 million, compared with its earlier forecast of C$220 million to C$235 million.
"Certain legacy fixed price contracts entered into by the company between 2010 and 2012 and the ongoing softness in the mining sector unfortunately continue to stress our performance in 2013," Chief Executive Robert Card said in a statement.
Analysts on average were expecting full-year net income of C$226.83 million, according to Thomson Reuters I/B/E/S.
The Montreal-based company had announced a new turnaround growth strategy in May, which called for a focus on lower-risk markets like North and South America as well as liquidating unspecified infrastructure investments.
SNC, which is trying to move forward from a series of corruption and ethics misconduct cases involving former top executives, is scheduled to report third-quarter results on November1.
(Reporting by Neha Alawadhi and Neha Dimri in Bangalore; Editing by Supriya Kurane)
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