snc lavalin

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. However, SNC wants to focus on its main engineering and construction businesses, so it is selling the concession rights to this project for $77.6 million. That’s equal to 61% of the $126.7 million, or $0.83 a share, that the company earned in the first half of 2014. Buy. BOMBARDIER INC. $3.71 (www.bombardier.com) has received a firm order for 40 of its upcoming CSeries passenger jets from Macquarie AirFinance, as well as options for an additional 10 aircraft. Including this order, the company now has firm orders for 243 CSeries planes, plus options for 320 more. In all, these 563 planes are worth roughly $39 billion U.S., which is equal to two year’s revenue. Bombardier is still testing the new plane and expects to begin deliveries in the second half of 2015. Buy....

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

...

STANTEC INC., $72.20, symbol STN on Toronto, is buying 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. The purchase will add 1,300 employees at 20 offices throughout Quebec. Stantec didn’t say how much it’s paying, but the move will add about $130 million to its annual revenue. To put that in perspective, Stantec reported $530.3 million of revenue in the latest quarter. The corruption inquiry is investigating Dessau in connection with illegal financing of political parties. However, under the terms of the deal, Stantec won’t be responsible for any of the millions of dollars in fines or penalties that Dessau may have to pay....

SNC-LAVALIN GROUP INC. $56 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.3 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.snclavalin.com) has agreed to sell its 21% stake in Astoria I, a private partnership that operates a gas-fired power plant in New York City.

The company did not say how much it would receive. However, it recently sold most of its interest in Astoria II, which operates a second power plant on the same site, for $87.6 million. To put that in context, SNC earned $32.1 million, or $0.21 a share, in the three months ended June 30, 2014. The sale cut SNC’s stake in Astoria II from 18.5% to 6.2%.

These sales are part of SNC’s new plan to focus on engineering projects in areas with stronger growth potential, such as mining, water treatment and oil and gas.

...

CAE INC. $13.45, Toronto symbol CAE, plans to sell its mining operations, which make simulators for training workers to operate underground trucks, loaders and drills. This business supplies just 2% of the company’s revenue. The mining operations were part of CAE’s New Core Markets division, which applies the company’s flight simulator expertise to other industries. This division, now called Healthcare, will focus on medical-simulation products, such as mannequins for training nurses and medical students. In its fiscal 2015 first quarter, which ended June 30, 2014, CAE’s earnings from ongoing operations fell 2.0%, to $43.6 million from $44.5 million a year earlier. Earnings per share were unchanged at $0.17, missing the consensus estimate of $0.19. Lower earnings from the company’s military-related businesses offset strong gains from its commercial division....

SNC-LAVALIN GROUP INC. $56 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.3 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.snclavalin.com) has agreed to sell its 21% stake in Astoria I, a private partnership that operates a gas-fired power plant in New York City. The company did not say how much it would receive. However, it recently sold most of its interest in Astoria II, which operates a second power plant on the same site, for $87.6 million. To put that in context, SNC earned $32.1 million, or $0.21 a share, in the three months ended June 30, 2014. The sale cut SNC’s stake in Astoria II from 18.5% to 6.2%. These sales are part of SNC’s new plan to focus on engineering projects in areas with stronger growth potential, such as mining, water treatment and oil and gas....

BCE INC., $49.32, Toronto symbol BCE, has agreed to buy the 56% of BELL ALIANT INC., $30.93, Toronto symbol BA, that it doesn’t already own. Bell Aliant sells phone and Internet services to 2.3 million customers in Atlantic Canada and rural Ontario and Quebec. It also provides wireless services through an alliance with BCE. Bell Aliant shareholders will have three options when they tender their shares: $31.00 in cash; 0.6371 of a BCE common share; or $7.75 in cash plus 0.4778 of a BCE share. Investors can defer capital gains taxes on the BCE shares they receive until they sell....

Thinking of buying Aecon Group Inc. stocks. Get answers why or why not.

Aecon Group Inc., $16.82, symbol ARE on Toronto (Shares outstanding: 56.4 million; Market cap: $956.8 million; www.aecon.com), is one of Canada’s largest infrastructure developers. Aecon and its predecessors built Canadian landmarks like the CN Tower, the St. Lawrence Seaway, the Calgary Olympic Oval and the Halifax Shipyards. Aecon has three main divisions: The Energy Group, which accounted for 54% of the company’s revenue in the latest quarter, builds various facilities and components for clients in the power industry, including nuclear reactors....

SNC-LAVALIN GROUP INC., $55.89, Toronto symbol SNC, rose 7% this week after announcing a major acquisition. The company has agreed to buy U.K.-based Kentz Corp. Ltd. (London exchange symbol KENZ), which provides engineering and construction services to the oil and gas industry. Kentz operates in 36 countries, which should increase SNC’s exposure to fast-growing regions like the Middle East, Asia and Australia....