OTTAWA (dpa-AFX) - SNC-Lavalin Group Inc. (SNCAF.PK, SNC.TO) announced Friday that it has withdrawn its financial outlook for the full year 2020 that was provided by the company on February 28, 2020, due to uncertainty regarding the impact of the coronavirus (COVID-19) pandemic and the related impact on the company's worldwide operations.
The company expects to provide a further update on the situation when it releases its first quarter 2020 earnings results.
Additionally, the company said it has and will continue to take all appropriate actions to protect its staff to maintain business operations for customers where allowable and possible, and to preserve liquidity.
In doing this, the company is following the latest health and safety measures and guidelines issued by the World Health Organization (WHO) and home country governments. It continues to actively offer its services and capabilities to customers and governments in the regions it operates.
The management is undertaking actions and measures to align the cost base of the Company to deliver cost savings as it starts the second quarter. Discretionary expenditure not required to directly support client delivery is being significantly reduced and capital expenditure frozen.
The company is also taking remedial actions due to temporary shutdowns, including reduced hours and employee furloughs. All SNC-Lavalin's executive leadership will be taking a 20% reduction in salary and Board members will take a 20% reduction in cash compensation for the second quarter.
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