SNC-Lavalin announces fourth quarter and year-end results for 2007



    
    Highlights

    Fourth Quarter
    --------------

    - For the fourth quarter of 2007, net income was $68.7 million ($0.45 per
      share on a diluted basis) compared to a net income of $50.7 million
      ($0.33 per share on a diluted basis) for the same period last year, an
      increase of 36%.

    Year-Ended December 31, 2007
    ----------------------------

    - For the year ended December 31, 2007, net income was $153.2 million
      ($1.00 per share on a diluted basis) compared to $158.4 million for the
      same period in 2006 ($1.04 per share on a diluted basis). This lower
      year-to-date net income is mainly due to a pre-tax operating loss of
      $267.3 million in the Power segment.

    - Year-to-date revenues increased to $6.7 billion from $5.2 billion for
      the corresponding period last year.

    - Backlog at the end of December 2007 remained strong at $10.6 billion.

    - Cash and cash equivalents remained solid at $1.1 billion on December
      31, 2007.

    Dividend Increase
    -----------------

    - The Board of Directors increased the cash dividend by 33% to $0.12 per
      share for the fourth quarter of 2007.

    

    MONTREAL, March 6 2008 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

    (in thousands of                                        Year ended
    Canadian dollars,          Fourth Quarter               December 31
    unless otherwise   -------------------------    -------------------------
    indicated)                2007          2006          2007          2006
    --------------------------------------------    -------------------------

    Revenues
      Services        $    515,155  $    375,811  $  1,726,129  $  1,180,237
      Packages           1,079,080       966,074     3,635,695     2,835,918
      Operations and
       Maintenance         320,927       246,501     1,058,368       920,846
      Infrastructure
       Concession
       Investments
       (ICI)                76,202        77,285       311,272       213,405
                       ------------  ------------  ------------  ------------
                      $  1,991,364  $  1,665,671  $  6,731,464  $  5,150,406
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    Net income from
     continuing
     operations       $     68,740  $     44,572  $     69,116  $    136,565
    Net income from
     discontinued
     operations                  -         6,145        84,086        21,807
                       ------------  ------------  ------------  ------------
    Net income              68,740        50,717       153,202       158,372

    SNC-Lavalin's net
     income from ICI:
      Highway 407            3,937         1,509        10,116         8,133
      Other ICI              2,194         3,868        15,026         7,678
                       ------------  ------------  ------------  ------------
    Net income,
     excluding ICI    $     62,609  $     45,340  $    128,060  $    142,561
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


    Diluted earnings
     per share from
     continuing
     operations ($)   $       0.45  $       0.29  $       0.45  $       0.89
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
    Diluted earnings
     per share ($)    $       0.45  $       0.33  $       1.00  $       1.04
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic      151,087       151,008       151,172       151,034
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
      Weighted average
       number of
       outstanding
       shares -
       Diluted             152,737       152,500       152,697       152,685
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


    Return on average
     shareholders'
     equity (ROASE)                                       16.5%         19.0%
                                                   ------------  ------------
                                                   ------------  ------------


    Backlog at
     December 31
      Services                                    $  1,556,500  $    819,800
      Packages                                       4,457,000     6,082,600
      Operations and
       Maintenance                                   2,513,900     1,570,200
      Infrastructure
       Concession
       Investments
       (ICI)                                         2,095,400     1,942,000
                                                   ------------  ------------
                                                  $ 10,622,800  $ 10,414,600
                                                   ------------  ------------
                                                   ------------  ------------


    -------------------------------------------------------------------------
    Note: SNC-Lavalin's proportionate share of 407 International Inc. results
          is referred to as "Highway 407".
          Certain 2006 figures have been reclassified to conform with the
          presentation adopted in 2007.
    

    N.B.: All amounts indicated in this press release are in Canadian
    dollars.

    SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the
fourth quarter and the year ended December 31, 2007.
    For the fourth quarter, net income was $68.7 million ($0.45 per share on
a diluted basis) compared to $50.7 million ($0.33 per share on a diluted
basis) for the comparable quarter in 2006.  This 36% increase in net income
reflects higher contributions mainly from the Chemicals & Petroleum,
Infrastructure & Environment, and Mining & Metallurgy segments, partially
offset by a pre-tax operating loss of $52.6 million in the Power segment in
the fourth quarter of 2007.
    For the year ended December 31, 2007, net income decreased to
$153.2 million ($1.00 per share on a diluted basis), compared to
$158.4 million ($1.04 per share on a diluted basis) for the same period in
2006. The decrease resulted primarily from a $267.3 million pre-tax operating
loss in the Power segment, which was mainly due to the Goreway project. This
decrease was partially offset by higher contributions from all other segments,
particularly Chemicals & Petroleum and Mining & Metallurgy and a net gain
after taxes of $84.1 million from the disposal of SNC Technologies.
    "After several years of steadily increasing net income, we encountered a
setback in 2007 with a loss in the Power segment," said Jacques Lamarre,
President and Chief Executive Officer, SNC-Lavalin Group Inc. "Despite this
setback, our 2007 consolidated net income was close to that achieved in 2006,
and we are pleased with the performance of the other segments."
    For the fourth quarter, revenues increased to $2.0 billion, up 20% from
the same period in 2006, mainly due to higher activities in the Chemicals &
Petroleum, Mining & Metallurgy and Operations & Maintenance segments.
Year-to-date revenues increased by 31% to $6.7 billion compared to the same
period in 2006, reflecting increased revenues in all segments.
    In 2007, the Company acquired 18 engineering firms with a total of
approximately 3,000 employees working out of offices in Brazil, Canada,
France, India, Spain and the United States. The total cash outflow for these
acquisitions was $161 million, and they brought our total number of employees
worldwide to over 18,000.
    The Company's backlog at the end of the year remained strong at
$10.6 billion, in line with the end of December 2006. The December 2007
backlog reflects an increase in the Services and Operations & Maintenance
categories offset by a decrease in the Packages category.
    The Company's balance sheet position remained solid with cash and cash
equivalents of $1.1 billion at December 31, 2007.
    "We see many opportunities across all our sectors of activity," added
Mr. Lamarre. "Given our strong backlog, the strength and diversity of our
revenue base, and our geographical coverage, we are optimistic about our
prospects for the coming year."
    In recognition of this positive outlook, the Board of Directors has
increased the quarterly cash dividend by 33% to $0.12 per share, payable April
3, 2008 to shareholders of record on March 20, 2008. 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. The SNC-Lavalin
companies have offices across Canada and in 35 other countries around the
world and are currently working in some 100 countries. 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 objectives, projections, estimates, expectations or
    predictions of the future may be "forward-looking statements", which can
    be identified by the use of the conditional or forward-looking
    terminology such as "believes", "expects", "may", "will", "should",
    "estimates", "anticipates", "projects", "plans", 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 that would cause the Company's
    actual results to differ from current expectations, please refer to the
    section "Risks and Uncertainties" in the Company's Annual Report under
    "Management's Discussion and Analysis". Unless otherwise mentioned, the
    forward-looking statements herein reflect the Company's expectations as
    of the date of this press release and are subject to change after this
    date. The Company does not undertake to update any forward-looking
    statements, whether oral or written, made by itself or on its behalf,
    except to the extent required by securities legislation.
    -------------------------------------------------------------------------

    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.




For further information:

For further information: Investors: Denis Jasmin, Vice-President,
Investor Relations, (514) 393-8000, ext. 7553, denis.jasmin@snclavalin.com;
Media: Gillian MacCormack, Vice-President, Public Relations, (514) 393-8000,
ext. 7354, gillian.maccormack@snclavalin.com


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