SNC-Lavalin forecasts adjusted earnings growth to hit double digits in 2018
SNC-Lavalin Group Inc. MONTREAL anticipates a double-digit increase in adjusted profits in 2018 as the acquisition of British engineering firm WS Atkins offsets continuing market challenges in some sectors.
The Montreal-based engineering and construction firm said its full-year adjusted net earnings should range between $3.60 and $3.85 per diluted share. That’s 12.5 to 20 per cent higher than the $3.20 per share earned last year.
“We have a positive outlook on growth and confidence in delivering on our 2020 vision,” CEO Neil Bruce said Thursday in a news release.
SNC-Lavalin said it expects the Atkins, mining and metallurgy, and power segments will improve while oil and gas along with infrastructure segments will be in line with 2017.
“Our recent selection as a preferred proponent for the Montreal light rapid transit system underscores the quality of our organic prospects and bolsters our reputation as the leader in infrastructure in Canada.”
It delivered $40 million of cost savings from the $3.6-billion Atkins acquisition last year and said it remains on track to reach $120 million in savings by the end of 2018 when the integration is completed.
SNC-Lavalin capped a strong year by seeing its net profit surge to $52.4 million in the fourth quarter as revenue jumped 32 per cent from the prior year.
Its profit attributable to shareholders amounted to 30 cents per diluted share for the quarter ended Dec. 31. That compared with a profit of $1.6 million or a penny per share in the final quarter of 2016.
Revenue totalled $2.92 billion, up from $2.21 billion. or the full year, it earned $382 million or $2.34 per share, up from $255.5 million or $1.70 per share in 2016.
Revenues increased nearly 10 per cent to $9.3 billion.