SNC-Lavalin issues another profit warning over mining dispute
SNC-Lavalin Group Inc. is warning that its profit for 2018 will be even lower that it cautioned in January, due to problems at an unidentified mining project in Latin America.
The company says it has agreed to settle the dispute with its client for the project through an accelerated arbitration process. However, SNC says the loss in its mining and metallurgy business will be higher than it expected on Jan. 28 because it won’t achieve the required level of agreement at this time to meet the accounting standards for revenue recognition.
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The company said it now expects that its adjusted diluted earnings per share from its engineering and construction business for 2018 will be in a range of 20 cents to 35 cents. Adjusted consolidated diluted earnings per share for the company as a whole are expected to be in a range of $1.20 to $1.35.
In January, the SNC said it expected 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, overall, are expected to be in the range of $2.15 to $2.30.
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