Advertisement

SNC-Lavalin withdraws financial guidance, works to cuts costs amid COVID-19 crisis

A man walks past the headquarters of SNC-Lavalin in Montreal on November 6, 2014.
A man walks past the headquarters of SNC-Lavalin in Montreal on November 6, 2014. Paul Chiasson/The Canadian Press

SNC-Lavalin Group Inc. is withdrawing its financial guidance for 2020 as it works to cut costs and manage its cash flow due to 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.

READ MORE: Hydro-Québec issues warning about fraudulent coronavirus messages

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.

[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]

SNC also says all of its executive leadership will be taking a 20 per cent reduction in salary and board members will take a 20 per cent reduction in cash compensation for the second quarter.

Story continues below advertisement
Click to play video 'Coronavirus outbreak: Trudeau says EI system will be ‘scaled up’ to meet new demand by April 6' Coronavirus outbreak: Trudeau says EI system will be ‘scaled up’ to meet new demand by April 6
Coronavirus outbreak: Trudeau says EI system will be ‘scaled up’ to meet new demand by April 6

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 per cent.

The company expects to provide an update on its situation when it releases its first-quarter results.