SNC-Lavalin Group reports $292.9M Q4 loss due to fraud settlement
MONTREAL -- SNC-Lavalin Group Inc. reported a fourth-quarter loss of $292.9 million as the company recorded a charge related to a $280-million fine it agreed to pay after its construction subsidiary pleaded guilty to fraud for actions taken in Libya between 2001 and 2011.
The engineering company has been working to set a new strategic direction in recent months including the addition of several new senior executives and changes to its board of directors.
In reporting its results Friday, SNC said a special committee established in December 2018 to explore a range of strategic alternatives has completed its work and been disbanded.
SNC chief executive Ian Edwards said 2019 was a challenging year for the company, but that it has made changes including a new focus on its engineering services business.
"Six months into our new strategic direction, it is clear to me after two quarters of solid results in the second half of 2019, that the strategy is delivering, and that we made the right decision," Edwards said in a statement.
He said with the settlement of the federal charges related to its activities in Libya and a refocused senior leadership team the company, its new direction is in place.
"We are well-positioned for the next chapter in the company's growth and transformation into a professional engineering services and project management solutions provider," he said.
The company said its loss amounted to $1.67 per diluted share for the quarter compared with a loss of $1.6 billion or $9.11 per diluted share in the same quarter a year earlier when it recorded a $1.2-billion goodwill impairment charge.
Revenue totalled $2.44 billion, down from $2.56 billion in the fourth quarter of 2018.
The results include a charge of $257.3 million due to the settlement of the federal charges and and after-tax restructuring costs of $99.6 million, mainly related to a decision to close the its Valerus facilities in Houston.
It said its adjusted earnings per share amounted to 56 cents per share for the fourth quarter including 45 cents from its engineering and construction business.
The result compared with an adjusted loss of $1.31 per diluted share in the last three months of 2018 when the engineering and construction business had an adjusted loss of $1.62 per diluted share.
This report by The Canadian Press was first published Feb. 28, 2020.