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SNC-Lavalin posts $2.1 billion loss as assets revalued, cuts dividend by 80%

Last Updated Aug 1, 2019 at 6:32 am PDT

on November 6, 2014 in Montreal. SNC-Lavalin Group is cutting its quarterly dividend for shareholders by 80 per cent as the troubled construction and engineering company grapples with a $2.12 billion net loss in its second quarter. THE CANADIAN PRESS/Paul Chiasson
Summary

SNC-Lavalin is grappling with a $2.12 billion net loss in its second quarter

The net loss included a non-cash charge totalling $1.8 billion

MONTREAL — SNC-Lavalin Group is cutting its quarterly dividend for shareholders by 80 per cent as the troubled construction and engineering company grapples with a $2.12 billion net loss in its second quarter.

The net loss included a non-cash charge totalling $1.8 billion to reflect the reduced value of its goodwill and other intangible assets.

SNC says in a statement that dropping its quarterly dividend to two cents per share from 10 cents per share is a prudent measure that will strengthen its balance sheet.

The Montreal-based company says its net loss attributable to SNC-Lavalin shareholders was equal to $12.07 per diluted share, which compared with a year-earlier profit of $83 million or 47 cents per share.

SNC’s net loss from its core engineering and construction business was $2.18 billion or $12.44 per share, partially offset by $65.5 million, or 37 cents per share, of earnings from SNC Capital.

The announcement comes as SNC copes with numerous high-profile issues including the recent departure of its chief executive following the company’s controversial handling of a court case that has embroiled the Trudeau government.

Companies in this story: (TSX:SNC)