SNC withdraws financial guidance, moves to cuts costs and manage cash flow
The construction giant also says all of its executive leadership will be taking a 20% reduction in salary
MONTREAL — SNC-Lavalin Group Inc. is withdrawing its financial guidance for 2020 as it works to cut costs and manage its cash flow due the COVID-19 pandemic and its impact of the company’s operations around the world.
The company says it has been able to continue work with clients from non-office-based locations, and to move work among different jurisdictions as required.
However, it says where it’s not possible for employees to carry on productive client work, due to temporary shutdowns or the nature of the client service, actions are being taken, including reduced hours and employee furloughs.
SNC also says all of its executive leadership will be taking a 20% reduction in salary and board members will take a 20% reduction in cash compensation for the second quarter.
In its outlook for 2020, SNC said on Feb. 28 that it expected gross revenue from SNCL Engineering Services, excluding Capital, to grow by a low single digit percentage. Segment earnings before interest, taxed, depreciation and amortization as a percentage of gross revenue, from SNCL Engineering Services, excluding Capital, were expected to be between 10 and 12%.
The company expects to provide an update on its situation when it releases its first-quarter results.