Friday, May 8, 2009

SNC-Lavalin makes more on less

SNC-Lavalin makes more on lessThree-month TSX trading in SNC

SNC-Lavalin made more money on less revenue in the first quarter, the Montreal-based engineering and construction company said Thursday.

It also said its backlog has fallen, but return on shareholder's equity has risen.

SNC said profit for the three months ended March 31 was $77.5 million (51 cents a diluted share), compared with $70.8 million (47 cents) a year earlier.

Revenue was $1.63 billion, compared with $1.78 billion.

Revenue fell mainly because of a nearly $300-million drop in the "packages" area, which includes contracts in which SNC-Lavalin provides both an engineering service and materials or equipment and/or construction work.

The company said return on average shareholders' equity was 28.2 per cent in the year ended March 31, compared with 25.8 per cent for the same period last year.

The order backlog at March 31 was $9 billion, down from $9.6 billion since Dec. 31.

SNC stock edged up 56 cents to $39.27 in early afternoon TSX trading. The 52-week range is $26 to $61.95.