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UPDATE 1-SNC-Lavalin earnings miss estimates on infrastructure projects

Published 2015-08-06, 09:00 a/m
© Reuters. UPDATE 1-SNC-Lavalin earnings miss estimates on infrastructure projects
ATRL
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(Recasts with analyst expectations, details on infrastructure
segment.)
Aug 6 (Reuters) - SNC-Lavalin Group Inc SNC.TO reported
second-quarter earnings that fell short of analysts'
expectations on Thursday after running into costly problems on
two infrastructure projects.
The engineering and construction company said its
infrastructure segment had a challenging quarter, mainly because
of difficult soil conditions along a transit tunnel and costs
associated with a major Canadian highway project. It did not
name either project.
"Despite some challenges in the second quarter in our
infrastructure segment, we believe that historical volatility in
the backlog will dissipate. We are maintaining our current
outlook for 2015, and believe the company is well positioned to
deliver a strong second half," said Chief Executive Officer
Robert Card.
The Montreal-based company expects earnings per share
between C$1.80 and C$2.10 for the full year.
Adjusted earnings were little changed for the second
quarter, even as revenue jumped, boosted by last year's
acquisition of engineering group Kentz Corp.
Excluding an amortization charge related to the Kentz
acquisition and other unusual items, earnings were C$53.2
million, or 34 Canadian cents a share, compared with C$52.0
million, or 34 Canadian cents.
Analysts expected earnings of 48 Canadian cents a share,
according to Thomson Reuters I/B/E/S.
Net income fell to C$26.5 million ($20.13 million), or 17
Canadian cents a share, from C$32.1 million, or 21 Canadian
cents, a year earlier. Revenue rose to C$2.25 billion from
C$1.70 billion.
($1 = $1.32 Canadian)

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