[quote]Shares of SNC-Lavalin Group Inc. tumbled on Tuesday after it revealed a probe into tens of millions of dollars of mysterious payments and warned that the impact of Libya's civil war would push its 2011 profit well below earlier forecasts.
The Canadian engineering and construction company, which also may delay the release of quarterly financial results, did not say whether the internal probe was in any way related to its extensive business dealings with the now-deposed regime of former Libyan dictator Muammar Gaddafi. SNC lost about a quarter of its market value after the Tuesday announcement.
Earlier this month, Montreal-based SNC suspended two company executives who Canadian newspapers said had ties with the family of the Libyan leader, who was killed by rebel forces after being driven from power.
In a carefully word statement on Tuesday, SNC said it expected to record payments of about C$35 million "relating to certain payments" in the fourth quarter that were linked to construction projects that were unrelated to the expenses.
SNC's board has started an independent investigation into the payments, and the company has retained lawyers. A company spokeswoman declined to comment further.
"The investigation's current findings support the company's accounting treatment of these payments," SNC said in the statement. The company's board is taking steps to implement changes and "further appropriate actions" arising from the investigation, it said.
SNC, one of the world's biggest engineering and construction companies, said it expected 2011 profit would come in about 18 percent below the company's earlier forecast, or C$80 million ($80 million) less than targeted.
The shares fell as low as C$36.56 in busy trading on the Toronto Stock Exchange on Tuesday morning, a loss of 24 percent.
"If none of the charges were related to Libya, we could view this development in a less negative light," Macquarie Capital Markets analyst Gareth Tingling said in a note to clients. "We are becoming concerned that 2011's events may affect SNC's ability to win business in 2012 and possibly beyond," he said.[/quote]
[url=http://ca.reuters.com/article/businessNews/idCATRE81R0WS20120228]**SOURCE**[/url]
:|
Sorry, you need to Log In to post a reply to this thread.