MONTREAL — WSP Global Inc. is reporting a big increase in net profits in the first quarter despite lower net revenues.
The Montreal-based engineering firm says its net earnings attributable to shareholders was $87.9 million or 77 cents per diluted share, up from $14.2 million or 13 cents per share a year earlier.
Excluding one-time costs, adjusted profits for the three months ended March 27 were $94.2 million or 83 cents per share, compared with $63.3 million or 60 cents per share in the first quarter of 2020.
The company says it pre-tax earnings increased mainly due to better productivity across the regions in which it operates, lower financing, acquisition and restructuring costs.
With two fewer billable days in the quarter, net revenues decreased four per cent to $1.67 billion from $1.74 billion a year earlier.
WSP was expected to post 60 cents per share in adjusted profits on $1.69 billion of revenues, according to financial data firm Refinitiv.
"Given our performance to date, our strong balance sheet, healthy backlog and proposal activity, we are optimistic that we will return to growth in Q2 and are reiterating our outlook," stated CEO Alexandre L'Heureux.
"We believe this positions us favourably to achieve our 2019-2021 strategic ambitions notwithstanding these unprecedented times."
This report by The Canadian Press was first published May 12, 2021.
Companies in this story: (TSX:WSP)
The Canadian Press