SNC-Lavalin redirects its focus to the Americas
A flurry of news releases came from Canada's largest engineering and construction company over the past seven days. On May 2 SNC-Lavalin presented its financial results for the first quarter of 2013, which were mixed. Net income excluding the...
A flurry of news releases came from Canada’s largest engineering and construction company over the past seven days. On May 2 SNC-Lavalin presented its financial results for the first quarter of 2013, which were mixed. Net income excluding the income from the company’s infrastructure concession investments (e.g. tolls from highways) was $18.6 million compared to $41.2 million for the same period in 2012.
With the concession investments included, net income was $53.6 million compared to $66.3 million in the first quarter of 2012.
On the bright side, revenues for the first quarter of this year have increased by 6.3% to $1.9 billion. But in the services division, revenues for the first quarter were not as good as last year: $651 million compared to $669 million in the same period of 2012.
On the same day the new corporate executive led by Robert G. Card, president and CEO, announced a new strategic plan for. The company will now concentrate on growing its resources sector in North and South America. The resources sector includes mining and metallurgy, hydrocarbons and chemicals, and environment and water. These were recently amalgamated into the “Resources, Environment and Water group” led by group president Neil Bruce.
The company said it will also be focusing on growing its infrastructure and clean power divisions in Canada and North America.
Internal business practices are also part of the strategic plan. The company said it wants greater interaction between the business units, and will make more company-wide use of SNC-Lavalin’s own systems and processes, such as its enterprise management system, its human resources management system, and its proprietary project management suite, PM+.
Card said “Our aim is to deliver exceptional value to customers, investors and employees by being a leading global provider of safe, well-governed, ethical and compliant integrated project services.”
On May 9 the company announced that Ric Sorbo, the acting executive vice-president in charge of the oil and gas division had decided to leave the company “to pursue other opportunities.” Neil Bruce is taking over his role until a replacement for Sorbo is found.