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SNC Sees Commodities Rebound Lifting Mining Margins and Backlog

  • Latin America, Middle East expected to be growth areas
  • ‘The bidding pipeline is very healthy,’ head of unit says
Big pile of copper wire close-up
Photographer: Epitavi/iStockphoto

SNC-Lavalin Group Inc. expects to bolster margins in its mining and metals business as soon as this year amid a rebound in commodities such as copper and fertilizers.

A pickup in demand will help Canada’s biggest engineering and construction company boost earnings before interest and taxes in the sector to 7 percent of revenue over time, Jose Suarez, who runs the mining unit, said this week. EBIT fell to 4.7 percent of revenue last year -- the worst performance among SNC’s five engineering and construction units.