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May 4 (Reuters) - Canada's SNC-Lavalin Group Inc SNC.TO reported a 26.5 percent decline in quarterly profit, hurt in part by weak demand in its core engineering and construction (E&C) business.
Revenue at the core business fell nearly 7 percent C$1.79 billion ($1.30 billion) in the first quarter ended March 31.
SNC, which undertook a sweeping cost-cutting program last year, said it expects to benefit from recent restructuring savings and added that some sectors will continue to face challenges in 2017.
But the company backed its forecast for 2017 adjusted profit from E&C of $1.70-$2 per share.
The company said net income attributable to shareholders fell to C$89.7 million , or 60 Canadian cents per share, in the first quarter, from C$122.1 million, or 81 Canadian cents per share, a year earlier.
The prior-year quarter included a gain of C$51.1 million on capital investments disposals. revenue fell 7 percent to C$1.85 billion, and missed analysts' average estimate of C$1.90 billion, according to Thomson Reuters I/B/E/S.
SNC said last month it would buy British engineering and consultancy firm WS Atkins Plc ATKW.L . ($1 = 1.3732 Canadian dollars)