Latest quarterly results from SNC-Lavalin and AECOM
Both firms continuing to take action to restructure their operations.
On August 1, SNC-Lavalin Group reported results for its second quarter ended June 30, with revenue in a quarter at $2.28 billion, down from $2.53 billion in Q2 2018. The firm’s net loss attributable to shareholders was reported at $2.1 billion, and the company announced an 80% cut to its quarterly dividend to shareholders, from $0.10 per share to $0.02 per share.
“Since assuming the position of interim CEO on June 11, I have listened carefully to our stakeholders’ concerns and we have rapidly begun executing on a new strategic plan for the company that is focused on de-risking the business and surfacing value in high-growth, high-performing areas of the business,” said interim president/CEO, Ian L. Edwards, in a media release.
“As part of our strategy, we will maintain a focus on effectively executing on the remaining backlog of lump-sum turnkey projects, and to this end are implementing several measures, including a new project oversight function that reports directly to me. While we implement these measures, I have recommended we take all prudent actions to strengthen our cash position and balance sheet; this includes reducing the dividend.”
“The decisions I have made, I believe are necessary to set us on a more sustainable path going forward,” he added. “We are building from a strong foundation, including a robust SNCL Engineering Services backlog of approximately $11 billion as of the end of Q2, an increase of 9% year-over-year.”
AECOM’s fiscal 2019 Q3 results show revenue of US$5.0 billion, a decrease of 3% over the prior year while adjusted EBITDA increased by 10% over the prior year to $244 million attributed primarily to higher margins and increased profitability in the firm’s design and consulting services (DCS) segment.
On June 17th, AECOM announced its intent to pursue a separation of its management services segment and continues to take actions to de-risk its portfolio with a focus on its higher-returning and lower-risk professional services businesses, including the recently closed sales of its Oil & Gas Production Services and International Development businesses as well as ongoing actions to exit more than 30 countries.
“The strategic actions we have taken over the past two years and continue to take are delivering positive results, including 14% year-to-date adjusted EBITDA growth,” said Michael S. Burke, AECOM’s chairman and CEO, in a company release.