SNC-Lavalin Group Inc.’s biggest investor sharpened its criticism of the beleaguered engineering company Monday, saying it needs to shake up its culture to improve its project execution and reverse its stock-price slide.
Pension fund giant Caisse de dépôt et placement du Québec, which holds a 20-per-cent stake in SNC-Lavalin, reaffirmed its long-term support for the Canadian engineering and construction company. But the Caisse, in its second public comment in recent weeks, said an internal overhaul is needed to better the company’s chances at future success. As a project-management company earning relatively slim profit margins, SNC-Lavalin needs to fine-tune its ability to complete projects and still make money, Caisse chief executive officer Michael Sabia said.
It was SNC-Lavalin’s third profit warning since January and prompted a public rebuke from the Caisse, which called out “the current unacceptable trend of the business” and urged “decisive and timely” action from the SNC-Lavalin board. Such a public statement is rare for the Caisse, which does not typically comment on its individual investments.
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