UPDATE 2-Canada's SNC-Lavalin to replace CEO hired amid bribery scandal

(Adds analyst comment, market reaction.)
Sept 14 (Reuters) - The chief executive hired to steer
Canadian engineering firm SNC-Lavalin Group Inc SNC.TO through
a wide-ranging corruption scandal in 2012 will step down next
month, handing off the company to his operations chief, the
company said on Monday.
Robert Card, an outsider brought in after the Montreal-based
firm was rocked by allegations of corruption against former
executives, will be succeeded by Chief Operating Officer Neil
Bruce effective Oct. 5. Card will stay on as an advisor.
AltaCorp Capital analyst Chris Murray said the announcement
was not a surprise, given an April reorganization that saw Bruce
elevated to chief operating officer, with the heads of four
operating divisions reporting to him. He had previously led the
company's resources and environment group.
"I think it would be fair to think that it may just be the
end of his term," said Murray on Card. "It might be time to move
to the next phase of the company's growth."
SNC said it would not hire a new chief operating officer.
Bruce has been with SNC since 2013, and helped build up the
company's oil and gas business. He had previously been chief
operating officer at rival firm AMEC, now Amec Foster Wheeler
PLC AMFW.L .
"Together, we will deliver improved results and returns as
we continue to improve operational efficiency, while managing
the remaining legacy issues," he said in a statement.
While SNC has won some key contracts and overhauled its
ethics and compliance system under Card, the firm is still
dealing with the fallout from the bribery scandal. In February,
Canadian police brought corruption charges against the company.
SNC said it would plead not guilty. ID:nL1N0SW0XX
In April, a consortium led by SNC-Lavalin was chosen to
build a new multi-billion dollar bridge in the Montreal area.
Also under Card's tenure, the company bought resource-sector
engineering group Kentz Corp, boosting earnings. ID:nL2N0XC33C
But it has struggled with some existing projects.
Second-quarter earnings fell short of analysts' expectations
after the firm ran into costly problems on two infrastructure
projects. ID:nL1N10H1CO
Shares slipped 1.5 percent to C$38.57 on the Toronto Stock
Exchange in early trading on Monday.