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UPDATE 1-SNC-Lavalin misses profit estimates as costs rise
November 2, 2017 / 12:45 PM / 21 days ago

UPDATE 1-SNC-Lavalin misses profit estimates as costs rise

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Nov 2 (Reuters) - Canadian construction and engineering company SNC-Lavalin Group Inc on Thursday reported a smaller-than-expected quarterly profit as costs nearly tripled due its acquisition of British engineering and consultancy firm WS Atkins.

The company closed the C$3.6 billion ($2.67 billion)acquisition of WS Atkins in July as its seeks to reduce its exposure to oil and gas, while bolstering its position in nuclear, rail and transportation and infrastructure businesses.

The business contributed C$805.3 million to the company’s revenue of C$2.63 billion, which rose 21 percent in the third quarter.

However, costs also rose to C$399 million from C$141.1 million, the company said.

Net income attributable to shareholders rose to C$103.6 million ($80.64 million), or 59 Canadian cents per share, for the quarter ended Sept. 30 from C$43.3 million, or 29 Canadian cents per share, a year earlier.

Excluding items, SNC posted a profit of 51 Canadian cents per share, missing the average analysts’ estimate of 56 Canadian cents per share, according to Thomson Reuters I/B/E/S. ($1 = 1.2847 Canadian dollars) (Reporting by Akshara P in Bengaluru; Editing by Anil D‘Silva)

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