Economic Minister not worried about poor returns from SNC-Lavalin
Economic Minister Pierre Fitzgibbon is not worried about SNC-Lavalin financially; however, he is more concerned about the challenges facing the company's new management.
Last Friday, SNC-Lavalin announced disappointing results for its second quarter and its share price once again tumbled.
Asked about it on Monday at a news conference in Montreal, Quebec's Minister of Economy and Innovation was reassuring about the financial strength of the engineering giant.
He pointed out that the sale of part of a stake in Highway 407 in the Greater Toronto Area should allow SNC-Lavalin to add nearly $3 billion to its cash reserves. It is not known, however, when exactly the amount will be paid.
Fitzgibbon said he was more concerned about the decisions that will be made by the new Acting President and CEO, Ian L. Edwards.
He has a "tremendous amount of work to do to get rid of operations where there has been too much risk and where there has been bad performance," said the minister.