Sinkholes linked to Evergreen Line construction take a toll on SNC-Lavalin profits
Posted August 6, 2015 8:42 am.
Last Updated August 6, 2015 9:09 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – The sinkholes that have plagued the Evergreen Line rapid transit project appear to have put a hole in the bottom line of the company building it.
SNC-Lavalin says its quarterly profit fell 17 per cent to $26 million due to cost overruns on a couple of projects.
The company’s earnings report mentions “challenging soil conditions relating to the tunnel portion of a mass transit project” in Canada. It’s believed that the only current SNC-Lavalin project involving tunneling is the Evergreen Line.
The company also cites delays in completing a highway project elsewhere in Canada, believed to be the Highway 407 expansion in Ontario.
Its infrastructure and construction unit lost $43 million in the quarter, more than four times greater than the year-earlier loss.
Despite today’s negative surprise, SNC-Lavalin has reaffirmed its full-year earnings outlook.
