Newspaper article The Canadian Press

Genivar Says Quebec Construction Inquiry Won't Stop Integration of British Firm

Newspaper article The Canadian Press

Genivar Says Quebec Construction Inquiry Won't Stop Integration of British Firm

Article excerpt

Genivar reports Q3 net earnings of $16.2M

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MONTREAL - Engineering and consulting firm Genivar Inc. said its focus on integrating a large British acquisition won't be diverted by the potential examination of its activities by the commission looking into corruption in Quebec's construction industry.

Police raided the Laval, Que., offices of Genivar and Aecom Technology Corp. on Tuesday as the Charbonneau commission investigates municipal contracts and alleged corruption involving the mayor of the city north of Montreal.

CEO Pierre Shoiry said Genivar has systems in place to monitor and ensure the proper governance of its 15,000 employees around the world. It has also put in place a chief ethical officer.

"It's very difficult for me to comment on anything that I'm not aware of," he said on a conference call to discuss third-quarter results when asked by an analyst about the commission's impact on its activities.

The company said it was cautiously optimistic about growth prospects in the province next year after a stable performance in the quarter that should continue in the final period of 2012.

However, it added: "the Charbonneau Commission is ongoing and recent political changes could impact market conditions, especially in the mining industry where the new government is considering the implementation of new rules and policies, which could impact capital expenditure investments," it said in a report accompanying the quarterly results.

Genivar said the performance of its Canadian operations remained resilient in the third quarter.

Activity is growing in Alberta, mainly in the oil and gas segment, following a slowdown caused by a change in the provincial government.

Meanwhile, Ontario remains intensely competitive and a challenging business environment. Government contracts are likely to be affected by the Liberal government's decision to prorogue the legislature until a new party leader is chosen as premier.

Maxim Sytchev of Alta Corp Capital said investors are concerned about what's happening in Quebec's engineering and construction market.

"Thankfully, the Quebec exposure for Genivar has been shrinking," he wrote in a report. …

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