SNC-Lavalin announces major shakeup, warns on profit and says all options open for resource business

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SNC-Lavalin announces major shakeup, warns on profit and says all options on table for resource business

Struggling construction and engineering firm SNC-Lavalin Group Inc on Monday withdrew its forecast for 2019, citing significantly lower results as it considers options for its resources unit and exits fixed-price contracts.

SNC, which in February forecast 2019 earnings of $3 to $3.20 per share, said on Monday it would reorganize the company’s resources and infrastructure construction segments into a separate business following continued poor performance of the units. Under lump-sum, turnkey contracting, a fixed price is agreed for the execution of a project or part of a project and once the final development is completed it is handed over to the client.

To calm investors and boost shareholder value, SNC has been looking to cut costs and earlier this year announced its exit from 15 countries.

 

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I wonder if the new CEO tightens up the corporate governance around blithely signing off on hookers and blow for dictators sons as a legitimate business expense. Or does he stick to the party line that you just don't know how this business works. Just a thought. cdnpoli

The how manyeth shake up in past few years?

They'll be trolling for a Federal Government bailout. If the LPC wins in October, they'll probably get it. lavscam

Lets let Trudeau take credit for this muahahahaha

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