snc lavalin

LOBLAW COMPANIES LTD., $61.78, Toronto symbol L, operates around 1,140 supermarkets across Canada, mainly under the Loblaw, Provigo, Real Canadian Superstore and No Frills banners. In March 2014, it purchased Shoppers Drug Mart, which operates 1,300 drugstores. This week, the company announced that it would build 50 new stores and renovate 100 others in 2015. In addition, it continues to expand its e-commerce operations. In all, Loblaw expects to spend $1.2 billion on these projects. That’s equal to the $1.2 billion, or $3.22 a share, it earned in 2014, excluding costs to integrate Shoppers....

SNC-LAVALIN GROUP INC. $38 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.5 million; Market cap: $5.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.6%; TSINetwork Rating: Average; www.snclavalin.com) earned $106.7 million in the fourth quarter of 2014, up 0.6% from $106.1 million a year earlier. Earnings per share were unchanged at $0.70. These figures exclude a gain on the sale of AltaLink, which operates power lines in Alberta. Revenue jumped 32.7%, to $2.8 billion from $2.1 billion, due to the recent acquisition of U.K.-based Kentz, which provides engineering and construction services to the oil and gas industry. The stock has suffered lately, mainly due to formal charges against the company for using bribes to win construction contracts in Libya between 2001 and 2011. These are the same allegations that prompted SNC to replace its senior executives in 2012 and bring in a new program to enforce ethical practices....

RESTAURANT BRANDS INTERNATIONAL INC., $52.21, Toronto symbol QSR, took its current form on December 12, 2014, as a result of Burger King Worldwide’s (old symbol BKW) acquisition of Tim Hortons Inc. (old symbol THI). Restaurant Brands is the world’s third-largest fast-food chain, after McDonald’s and Yum Brands, with 14,372 Burger King outlets and 4,671 Tim Hortons locations in 100 countries. In the three months ended December 31, 2014, the company lost $514.2 million, or $2.52 a share, compared to a profit of $66.8 million, or $0.19 (all amounts except share price in U.S. dollars). If you exclude merger costs and other unusual items, gross earnings before depreciation, interest and taxes rose 23.1%....

STANTEC INC. $30.05 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.8 million; Market cap: $2.8 billion; Dividend yield: 1.2%) (all figures adjusted for a 2-for-1 share split in November 2014) sells a range of consulting, project-delivery, design and technology services. The company’s clients operate in a variety of industries, including oil and gas, transportation and construction.

In the quarter ended September 30, 2014, Stantec’s revenue rose 12.2%, to $544.2 million from $484.8 million a year earlier. Earnings gained 5.7%, to $48.6 million, or $1.04 a share, from $46.0 million, or $0.99.

Stantec continues to grow by acquisition. It has now completed its purchase of Montreal-based Dessau, a distressed firm that’s one of a number of companies caught up in a Quebec government inquiry into corruption in the construction industry. Under the deal, Stantec won’t be responsible for any of the millions of dollars in fines or penalties Dessau may have to pay.

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STANTEC INC. $30.05 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.8 million; Market cap: $2.8 billion; Dividend yield: 1.2%) (all figures adjusted for a 2-for-1 share split in November 2014) sells a range of consulting, project-delivery, design and technology services. The company’s clients operate in a variety of industries, including oil and gas, transportation and construction. In the quarter ended September 30, 2014, Stantec’s revenue rose 12.2%, to $544.2 million from $484.8 million a year earlier. Earnings gained 5.7%, to $48.6 million, or $1.04 a share, from $46.0 million, or $0.99. Stantec continues to grow by acquisition. It has now completed its purchase of Montreal-based Dessau, a distressed firm that’s one of a number of companies caught up in a Quebec government inquiry into corruption in the construction industry. Under the deal, Stantec won’t be responsible for any of the millions of dollars in fines or penalties Dessau may have to pay....

SNC-LAVALIN GROUP INC. $40 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.5 million; Market cap: $6.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.4%; TSINetwork Rating: Average; www.snclavalin.com) is narrowing its focus to engineering projects in the oil and gas, mining and water treatment industries.

As part of this plan, it recently paid $2.1 billion for U.K.-based Kentz Corp., which supplies engineering and construction services to oil and gas firms. Kentz increased SNC’s exposure to fastgrowing regions like the Middle East, Asia and Australia.

To pay for Kentz, SNC recently sold AltaLink, which distributes electricity in Alberta, for $3.1 billion.

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The four companies below sell gear and services to energy-exploration and mining firms. As a result, their shares have fallen with the recent drop in prices for oil, gold and other commodities. However, all four lead their niche industries and should rebound strongly when commodity prices recover. The drop also means they now trade at attractive multiples to their projected earnings. SNC-LAVALIN GROUP INC. $40 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.5 million; Market cap: $6.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.4%; TSINetwork Rating: Average; www.snclavalin.com) is narrowing its focus to engineering projects in the oil and gas, mining and water treatment industries....

TRANSCANADA CORP., $56.05, Toronto symbol TRP, rose this week in response to the U.S. mid-term elections, which gave the Republican Party control of the Senate. That makes it more likely that the U.S. government will approve the company’s Keystone XL pipeline, which would pump crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. Due to various delays, the company now expects Keystone XL to cost $8.0 billion U.S., up 48.1% from its 2008 estimate of $5.4 billion U.S. To date, it has spent $2.4 billion U.S. on this project. TransCanada also plans to spend $2.7 billion to expand its Nova pipeline network in Western Canada to handle rising shale gas production in Alberta and B.C. In addition, it will invest $475 million to upgrade its Ontario gas pipelines. The company expects to complete these projects in 2016 and 2017....

SNC-LAVALIN GROUP INC. $51 (www.snclavalin.com) designed and built Montreal’s Maison symphonique concert hall, which houses the Montreal Symphony Orchestra, in 2009. The company also operates the hall under a long-term deal with the Quebec government....

STANTEC INC. $67.93 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.8 million; Market cap: $3.1 billion; Dividend yield: 1.1%) sells a range of consulting, project-delivery, design and technology services. Its clients operate in a variety of industries, including oil and gas, transportation and construction. In the quarter ended June 30, 2014, Stantec’s revenue rose 13.0%, to $530.3 million from $469.4 million a year earlier. Earnings gained 22.6%, to $44.3 million, or $0.95 a share, from $36.1 million, or $0.78. Timely move into Quebec...