Tuesday, March 31st7.2°C
25757
25546

SNC-Lavalin CEO puts 'year of housekeeping' behind him and looks to rebuilding

MONTREAL - The CEO of SNC-Lavalin called 2013 a "year of housekeeping" as the company continued to deal with allegations of corruption and fraud and posted lower profit and revenue in its fourth quarter.

Chief executive Robert Card said Thursday that he expects this year to be one of rebuilding for the Montreal engineering and construction giant.

And by 2015 there should be a "beginning of a return to normalcy," he told financial analysts on a conference call.

"We have made good progress in 2013 on many fronts," Card said. "I'm confident we'll continue this momentum in 2014."

SNC-Lavalin (TSX:SNC) operates around the world and has been dealing with the fallout from multiple allegations of corruption levelled at certain former SNC senior executives, including its former CEO.

The reputation of the Canadian company has been tarnished since it disclosed in March 2012 that an internal investigation found that $56 million in questionable payments had been made.

SNC's former chief executive, Pierre Duhaime, was "relieved of his duties''' and was later charged with fraud involving $22.5 million in payments related to the construction of a Montreal hospital.

Last August, the company disclosed that 32 employees had admitted ethical violations under the company's three-month amnesty program. It was launched after both internal and police investigations into the allegations of fraud and corrupt practices in Canada and abroad.

SNC-Lavalin has since introduced a company-wide ethics and compliance program.

Card noted that SNC-Lavalin received approval last month to bid on public contracts in Quebec and called it a "key milestone."

Quebec's securities regulator gave the authorization in February after months of investigation and has said the company passed all checks from the province's anti-corruption squad and has ensured that all people associated with alleged improprieties have left the company.

The company recently hired a senior executive from Dow Chemical Co. to oversee its governance, ethics and compliance efforts as it works to restore confidence in its practices.

But SNC-Lavalin said it's confident in its long-term outlook and will raise the quarterly dividend to 24 cents per share, a four per cent increase from its current dividend.

In its financial results, the company said that its revenue fell to $2.12 billion in the fourth quarter from $2.42 billion a year earlier.

The $300-million reduction in revenue in the quarter was spread across most of SNC's activities, but was offset by increased revenue from its investments in infrastructure concessions, such as AltaLink, which is Alberta’s largest regulated electricity transmission company.

SNC's overall net income fell to $92.6 million, from $93.9 million in the fourth quarter of 2012. The decrease would have been bigger without improvements from infrastructure concession investments.

Net income per diluted share fell to 61 cents from 62 cents a year earlier and were a penny below analyst estimates.

Its main operating activities — building, operating and maintaining major projects in several industries — had a loss of $31.3 million in the quarter, compared with $23.46 million in net income a year before.

Net income from infrastructure concession investments grew to $123.8 million from $70.4 million in the fourth quarter of 2012, offsetting most of the decline in SNC's operating activities.

The company said that several of its divisions — infrastructure and environment, oil and gas and mining and metallurgy — will continue to face challenges in the coming year.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX14908.39+95.97
S&P CDNX680.33-1.10
DJIA17976.31+263.65
Nasdaq4947.44+56.22
S&P 5002086.24+25.22
CDN Dollar0.7843-0.0043
Gold1184.20-0.60
Oil47.54-1.14
Lumber280.60+1.30
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.115-0.010
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.215-0.004
Metalex Ventures0.04-0.01
Russel Metals24.40-0.10
Copper Mountain Mining1.18+0.05
Colorado Resources0.12-0.01
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.235-0.020
Decisive Dividend Corporation1.80+0.02

 



25608

FEATURED Property
2208852Resort Style Living in Skye @ Waterscapes
$295,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


25579