UPDATE 1-Stantec cuts quarterly loss on smaller charge

Thu Nov 5, 2009 6:35pm GMT
 
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* Net loss of C$10 mln, down from C$30 mln year earlier

* C$35 mln goodwill impairment charge on U.S. West unit

* Net revenue climbs 6.1% to C$306.7 mln

* Shares fall 1.6 percent to C$26.56 on TSX (New throughout)

By Susan Taylor

OTTAWA, Nov 5 (Reuters) - Canadian engineering firm Stantec Inc (STN.TO) (STN.N) reported a sharply lower quarterly loss on Thursday, reflecting a smaller impairment charge, but net revenue lagged expectations as demand for the company's industrial and urban land services weakened.

Those businesses were especially hard hit in the United States, which accounted for 42 percent of revenue in the quarter, but their decline was more than offset by growth in Stantec's environment and transportation divisions.

Stantec, which wants to become one of the world's top 10 engineering and architectural design firms, closed its biggest acquisition in January, with the C$143 million ($134.9 million) takeover of environmental consultancy Jacques Whitford.

Most recently, Stantec said it was buying Granary Associates, a U.S. healthcare-project management and design engineering firm with about 100 staff. The value of the late-October deal was not announced.  Continued...

 

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