SNC-Lavalin Raises 2015 EPS View

(RTTNews) - Engineering and construction company SNC-Lavalin (SNC.TO) said that it increased its 2015 outlook range for the reported IFRS earnings per share to C$2.40 to C$2.70, from its previous guidance of C$1.80 to C$2.10, mainly due to the third quarter net gain on disposal of an ICI, partially offset by additional charges related to the newly initiated "STEP Change" plan. Analysts polled by Thomson Reuters expected the company to report earnings of C$2.08 per share for 2015. Analysts' estimates typically exclude special items.

It expects that its 2015 outlook for adjusted earnings per share from E&C will be at the lower end of the previously announced range of C$1.30 to C$1.60.

The 2015 outlook is principally based on the expectation that the Oil & Gas and Power segments will be the main contributors to net income, while the Infrastructure & Construction sub-segment will be the lowest contributor.

Looking ahead, the company will be taking additional measures to align its cost base and operating organisation during the balance of 2015 to ensure that it delivers on its target of an annualised E&C EBITDA margin of 7% in 2017.

The Board of Directors declared a cash dividend of C$0.25 per share, payable on December 3, 2015, to shareholders of record on November 19, 2015. This dividend is an "eligible dividend" for income tax purposes.