SNC-Lavalin announces its results for the third quarter and nine-month period ended September 30, 2011

Highlights

  • For the third quarter of 2011, net income attributable to SNC-Lavalin shareholders increased by 15.8% to $125.6 million ($0.83 per share on a diluted basis) compared to $108.5 million ($0.71 per share on a diluted basis), excluding a 2010 gain from the disposal of technology solution assets of $19.6 million.
  • For the nine-month period ended September 30, 2011, net income attributable to SNC-Lavalin shareholders  was $300.2 million ($1.97 per share on a diluted basis), compared to $311.7 million ($2.05 per share on a diluted basis) for the same period in 2010, excluding the 2010 gain from disposal of technology solution assets of $19.6 million.
  • Revenues for the nine-month period ended September 30, 2011 increased by 21.7% to $5.1 billion, compared to $4.2 billion for the nine-month period ended September 30, 2010.
  • Revenue backlog totalled $9.4 billion at the end of September 2011 compared to $9.7 billion at the end of December 2010. Services backlog increased by 55.7% to a new record level of $2.2 billion.
  • Financial position remained solid with cash and cash equivalents of $1.0 billion at September 30, 2011.
  • Return on average shareholders' equity was 24.0% for the 12-month period ended September 30, 2011.
  • The Board of Directors declared a cash dividend of $0.21 per share for the third quarter of 2011.

MONTREAL, Nov. 4, 2011 /CNW Telbec/ -

SNC-Lavalin Group Inc.
Financial Highlights (unaudited)

 

 

 

 
 
  Third Quarter   Nine months ended September 30
(in thousands of Canadian dollars, unless otherwise indicated) 2011   2010   2011   2010
                       
Revenues by activity                      
  Services $ 597,992   $ 493,637   $ 1,642,533   $ 1,452,449
  Packages   758,799     610,501     2,082,923     1,466,227
  Operations and Maintenance   308,284     308,041     1,016,739     946,840
  Infrastructure Concession Investments (ICI)   115,031     100,820     345,515     315,529
  $ 1,780,106   $ 1,512,999   $ 5,087,710   $ 4,181,045
                       
                       
Net income excluding ICI $ 100,023   $ 111,640   $ 208,518   $ 251,056
SNC-Lavalin's net income from ICI   25,597     16,422     91,721     80,285
Net income attributable to SNC-Lavalin shareholders   125,620     128,062     300,239     331,341
Net income attributable to non-controlling interests   3,010     1,509     8,405     7,857
Net income $ 128,630   $ 129,571   $ 308,644   $ 339,198
                       
                       
Diluted earnings per share ($) $ 0.83   $ 0.84   $ 1.97   $ 2.18
                       
                       
Shares outstanding (in thousands)                      
  Weighted average number of outstanding shares - Basic   150,889     150,967     150,888     150,963
  Weighted average number of outstanding shares - Diluted   151,800     151,970     152,027     152,142
                       
                       
Return on average shareholders' equity (ROASE) (1)               24.0%     27.4%
                       
                       
              As at   As at
              September 30   December 31
Revenue backlog by activity             2011   2010
  Services             $ 2,196,600   $ 1,410,700
  Packages               4,840,000     5,556,000
  Operations and Maintenance               2,393,200     2,732,800
              $ 9,429,800   $ 9,699,500


(1) Corresponds to the trailing 12-month net income attributable to SNC-Lavalin shareholders, divided by a trailing 13-month average equity attributable to SNC-Lavalin shareholders, excluding "other components of equity".

N.B.: All amounts indicated are in Canadian dollars.

SNC-Lavalin Group Inc. (TSX: SNC) announced its results today for the third quarter and nine-month period ended September 30, 2011.

For the third quarter of 2011, net income attributable to SNC-Lavalin shareholders was $125.6 million ($0.83 per share on a diluted basis), compared to $128.1 million ($0.84 per share on a diluted basis) for the comparable quarter in 2010, or $108.5 million ($0.71 per share on a diluted basis) excluding the 2010 gain of $19.6 million from the disposal of technology solution assets. This 15.8% increase in 2011, excluding the 2010 gain, mainly reflects higher contributions from the Chemicals & Petroleum, Power, Mining & Metallurgy and Infrastructure Concession Investments segments, partially offset by a lower contribution from the Infrastructure & Environment segment.

For the nine-month period ended September 30, 2011, net income attributable to SNC-Lavalin shareholders was $300.2 million ($1.97 per share on a diluted basis), compared to $331.3 million ($2.18 per share on a diluted basis) for the comparable period in 2010, or $311.7 million ($2.05 per share on a diluted basis) excluding the 2010 gain of $19.6 million from the disposal of technology solution assets. This decrease reflects a lower net income excluding Infrastructure Concession Investments, partially offset by a higher net income from Infrastructure Concession Investments. Net income, excluding Infrastructure Concession Investments, was $208.5 million compared to $251.0 million, or $231.4 million excluding the 2010 gain. This decrease mainly reflects a lower contribution from the Infrastructure & Environment segment, partially offset by higher contributions from all other segments. The net income from Infrastructure Concession Investments was $91.7 million, compared to $80.3 million for the first nine months of 2010, mainly due to higher dividends from Highway 407.

Revenues for the nine-month period ended September 30, 2011 increased by 21.7% to $5.1 billion compared to $4.2 billion for the same period in 2010. Revenues increased in all the Company's segments of activity and in all revenue categories, with Packages revenues growing by 42.1% and Services revenues growing by 13.1%. For the third quarter of 2011, Packages and Services revenues increased by 24.3% and 21.1% respectively compared to the third quarter 2010.

"We are pleased with our quarterly results and our revenue backlog, where the Services category has reached an all-time high. We continue to expect our 2011 net income to remain in line with 2010, when we exclude the gains from the disposals of certain assets and investments recognized in 2010," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are also pleased to have completed two new acquisitions this fall; Interfleet Technology, which brings us additional world class expertise in the high growth rail sector worldwide, and Arcturus Realty Corporation, a well-established manager of third party real estate assets. These acquisitions will open up new opportunities and markets, and expand others for us all over the world. We also closed the transaction for full ownership of AltaLink, and concluded the acquisition of certain assets of Atomic Energy of Canada Limited. All in all, it has been a very active and successful few months in terms of acquisitions."

Revenue backlog remained strong at $9.4 billion at the end of September 2011, compared to $9.7 billion at the end of December 2010. The Packages and Operations & Maintenance revenue backlog decreased while the Services revenue backlog increased by 55.7% to a record level of $2.2 billion.

The Company's financial position remained solid with cash and cash equivalents totalling $1.0 billion as at September 30, 2011.

The Company's return on average shareholders' equity was 24.0% for the 12-month period ended September 30, 2011.

The Board of Directors today declared a cash dividend of $0.21 per share, payable on December 2, 2011 to shareholders of record on November 18, 2011. This dividend is an "eligible dividend" for income tax purposes.

SNC-Lavalin (TSX: SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. In business since 1911, the Company celebrates its 100th anniversary in 2011. www.snclavalin.com

Reference in this press release, and hereafter, to the "Company" or to "SNC-Lavalin" means, as the context may require, SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint ventures, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint ventures. Statements made in this press release that describe the Company's or management's budgets, estimates, expectations, forecasts, objectives, predictions or projections of the future may be "forward-looking statements", which can be identified by the use of the conditional or forward-looking terminology such as "anticipates", "believes", "estimates", "expects", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. For more information on risks and uncertainties, and assumptions that would cause the Company's actual results to differ from current expectations, please refer to the section "Risks and Uncertainties" and the section "How We Analyze and Report our Results", respectively, in the Company's 2010 Financial Report under "Management's Discussion and Analysis". The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.

SNC-Lavalin's Consolidated Financial Statements and Management's Discussion and Analysis and other relevant financial materials are available in the Investor Relations section of the Company's website at www.snclavalin.com. These and other Company reports are also available on the website maintained by the Canadian Securities regulators at www.sedar.com.

 

 

 

SOURCE SNC-LAVALIN

For further information:

Investors:      Media:
Denis Jasmin
Vice-President, Investor Relations 
514-390-8000, ext. 7553
denis.jasmin@snclavalin.com
Leslie Quinton
Vice-President, Global Corporate Communications
514-390-8000, ext. 7354
leslie.quinton@snclavalin.com

Profil de l'entreprise

SNC-LAVALIN

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.