UPDATE 1-Stantec profit drops, sees market stabilizing

* EPS C$0.30 vs C$0.45

* Revenue declines to C$296.7 mln from C$343.2 mln

* Stock falls 2.3 pct at open to C$25.85
(Adds detail)

OTTAWA, May 13 (BestGrowthStock) – Canadian engineering firm
Stantec Inc (STN.TO: ) (STN.N: ) reported a 34 percent decline in
quarterly earnings on Thursday that reflect a “tough economy”,
but it said the North American market is stabilizing.

Net profit fell nearly 34 percent to C$13.7 million ($13.4
million), or 30 Canadian cents a share, in the three months
ended March 31, from C$20.7 million, or 45 Canadian cents a
share, in the same period the year before.

Net revenue, which excludes sub-consultant costs, fell to
C$296.8 million from C$343.3 million.

“We made an enormous effort last year to continue to manage
our business effectively through a tough economy,” Chief
Executive Bob Gomes said.

“And that put us in a good position for the first quarter
to capitalize on the opportunities presented, which meant
winning a number of projects in key sectors and being able to
put people back to work full time and hire additional staff in
some areas.”

Stantec’s growth rate has been dampened over the past two
years by slumping U.S. demand, but that construction market is
expected to stage a modest recovery this year, said Dundee
Capital Markets analyst Richard Stoneman in a recent note.

Shares of the acquisition-hungry company fell 61 Canadian
cents, or 2.3 percent, to C$25.85 on the Toronto Stock Exchange
in opening trade on Thursday

Stock Market Research Tools

($1=$1.02 Canadian)
(Reporting by Susan Taylor; Editing by Frank McGurty)

UPDATE 1-Stantec profit drops, sees market stabilizing