Montreal-based SNC-Lavalin Group Inc (SNC.TO) reported a better-than-expected quarterly profit, helped by strength in its core engineering and construction business and lower costs.

SNC is undertaking a sweeping cost-cutting program expected to help lower 2016 expenses by about $100 million and boost margins in its core business as clients cut spending due to low commodity prices.

The company said on Thursday total selling, general and administrative expenses decreased by 10.1 per cent in the second quarter, from a year earlier.

SNC's adjusted earnings for the quarter was 48 cents per share, above the average analyst estimate of 36 cents, according to Thomson Reuters.

Net income attributable to the company's shareholders jumped more than three-fold to $88.5 million, or 59 cents per share, in the quarter ended June 30.

The engineering and construction business accounted for nearly 60 per cent of the company's net income.

The company's revenue fell 6.6 per cent to $2.11 billion.