MONTREAL – Montreal-based engineering giant SNC-Lavalin tripled its second-quarter profit with help from its engineering and construction sectors as well as through cost reductions.
SNC-Lavalin (TSX:SNC) generated a net income of $88.5 million or 59 cents per share, compared to $26.5 million or 17 cents per share the same time last year, thanks in part to higher margins in its infrastructure, oil and gas and energy sectors.
In a presentation to investors, the company said it cut general and administrative expenses by 10.1 per cent in the quarter. The reductions stemmed from the “Step Change” program, which was completed last fall.
The program was put in place in order to help SNC-Lavalin cut costs by $100 million this year. Roughly 950 employees, including about 250 in Quebec, were victims of the cost-cutting measures.
“We are satisfied with our results in the second quarter and we will continue to establish uniform processes across all of our sectors,” said SNC CEO and president Neil Bruce.
Bruce said he was also happy with a second program aimed at finding efficiencies in the company’s engineering sector. SNC-Lavalin doesn’t foresee any job cuts tied to the new program.
Quarterly revenues were down slightly, to $2.1 billion versus $2.25 billion one year ago, the company reported. Total revenue coming from engineering and construction was $2 billion, compared with $2.2 billion last year.
Adjusted net income from engineering and construction was $71.4 million or 48 cents per share compared to $8.2 million or five cents per share for the corresponding period of 2015.
SNC-Lavalin is one of the leading engineering and construction companies in the world.