SNC-Lavalin posts $2.1 billion loss as assets revalued, cuts dividend by 80%
Posted August 1, 2019 9:17 am.
Last Updated August 1, 2019 2:36 pm.
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)
The Canadian Press
