Steel fabricator Canam Group Inc. says it will take a $25-million hit on its books to deal with higher costs to complete the cables on the BC Place stadium retractable roof in Vancouver.
The Montreal-area company said Thursday it will book the $25-million after-tax reserve in the first quarter of its 2011 fiscal year.
The company is slated to release its results next Wednesday.
"The corporation believes this reserve represents the likely loss until completion of the project," Canam Group said in a release.
It added that discussions to reduce the impact of the reserve are ongoing with project participants.
Canam designs and builds construction products and has more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China.
The company also has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.
Canam has had numerous contracts to build and refurbish sports stadiums and arenas in Canada and the U.S. and is seen as an industry leader in this field.
Some of the work the company has done was on the New York Mets' Citi Field, the new Florida Marlins stadium that opens next year and the New York Giants' and New York Jets' Meadowlands Stadium in New Jersey.
In late 2009, Canam's Structural Division won a $100-million contract to build the world's largest cable-supported retractable roof to replace the air-supported dome at BC Place in Vancouver.
At the time, the contract brought to 53 the number of North American sports arenas and stadiums the Canam division had worked on over the years, 20 of which are home to Major League Baseball teams.Report Typo/Error
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