Canada's SNC-Lavalin hints at more cost cuts
(Reuters) - Canadian engineering and construction company SNC-Lavalin Group Inc's (SNC.TO: Quote) new CEO, Neil Bruce, hinted at more cost cuts on Thursday to help meet the company's 2017 margin targets.
Bruce succeed Robert Card, an outsider brought in after the firm faced by allegations of corruption against former executives, in October.
"We will be taking additional measures to align our cost base and operating organization during the balance of 2015," Bruce said in a statement.
The company, however, did not give detail the measures it planned to take.
SNC-Lavalin said on Thursday that 2015 profit will be at the lower end of its previously announced range of C$1.30-C$1.60 per share.
Revenue rose 21 percent to C$2.43 billion ($1.84 billion) in the third quarter ended Sept. 30, helped by the acquisition of British resource-sector engineering group Kentz Corp KENZ.L last year.
Analysts on average had estimate revenue of C$2.39 billion.
Net income attributable rose nearly four-fold to C$224.2 million in the quarter, mainly helped by a net gain of C$145.7 million from the sale of its stake in the Ambatovy Nickel project in Madagascar in September.
On an adjusted basis, earnings were 78 Canadian cents per share, above the average analyst estimate of 50 Canadian cents, according to Thomson Reuters I/B/E/S. Continued...