SNC Lavalin Group warns profit for 2018 will be lower than expected
In addition, SNC says it is experiencing worse than expected trading challenges in its oil and gas business in the Middle East, and Saudi Arabia in particular
MONTREAL—SNC-Lavalin Group Inc. is warning that its full year 2018 results will be lower than expected.
The company says a serious problem has been found related to a single project in its mining and metallurgy business.
It says the contract was awarded in 2016 and its year-end under-performance relative to internal budgets will materially affect its fourth-quarter results.
In addition, SNC says it is experiencing worse than expected trading challenges in its oil and gas business in the Middle East, and Saudi Arabia in particular.
The company says it plans to take a non-cash, after-tax goodwill impairment charge of approximately $1.24 billion or $7.06 per diluted share related to its oil and gas business.
SNC says it expects that its adjusted diluted earnings per share from its engineering and construction operations for 2018 to be in the range of $1.15 to $1.30.
Adjusted consolidated diluted earnings per share are expected to be in the range of $2.15 to $2.30.
In November, the company had forecast adjusted diluted earnings per share from engineering and construction to be in a range of $2.60 to $2.85.
Adjusted consolidated diluted earnings per share were expected in a range of $3.60 to $3.85.
