SNC-Lavalin announces fourth quarter and year-end results for 2009

    
                                 Highlights

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

    - Net income for the fourth quarter of 2009 increased to $98.7 million
      ($0.65 per share on a diluted basis), compared to $75.0 million ($0.49
      per share on a diluted basis) for the fourth quarter of 2008.

    Year Ended December 31, 2009
    ----------------------------

    - Net income for the year ended December 31, 2009 increased by 15.0% to
      $359.4 million ($2.36 per share on a diluted basis), compared to
      $312.5 million ($2.05 per share on a diluted basis) for the year ended
      December 31, 2008.
    - Revenues for the year ended December 31, 2009 were lower, at
      $6.1 billion, compared to $7.1 billion for the year ended December 31,
      2008, mainly due to decreased activities in Packages.
    - Total revenue backlog for the four revenue categories: Services,
      Packages, Operations & Maintenance and Infrastructure Concession
      Investments increased to $10.8 billion at the end of December 2009,
      compared to $9.6 billion at the end of December 2008.
    - Balance sheet position remained solid with cash and cash equivalents of
      $1.2 billion at December 31, 2009.
    - Return on average shareholders' equity was 27.3% for the 12-month
      period ended December 31, 2009.

    Dividend Increase
    -----------------
    - The Board of Directors increased the cash dividend by 13% to $0.17 per
      share for the fourth quarter of 2009.
    

MONTREAL, March 5, 2010 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)
                                                           Year ended
                                Fourth Quarter            December 31
                           ------------------------ -------------------------
    (in thousands of
     Canadian dollars,
     unless otherwise
     indicated)                  2009         2008         2009         2008
    ----------------------------------------------- -------------------------

    Revenues by activity
      Services            $   557,156  $   711,962  $ 2,221,410  $ 2,305,393
      Packages                587,316      778,473    2,202,162    3,229,444
      Operations and
       Maintenance            335,302      369,601    1,297,905    1,225,012
       Infrastructure
        Concession
        Investments (ICI)     103,439       83,879      380,260      347,020
                          ------------ ------------ ------------ ------------
                          $ 1,583,213  $ 1,943,915  $ 6,101,737  $ 7,106,869
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Net income            $    98,734  $    74,955  $   359,394  $   312,520
    SNC-Lavalin's net
     income from ICI           22,689       13,608       36,884       37,173
                          ------------ ------------ ------------ ------------
    Net income
     excluding ICI        $    76,045  $    61,347  $   322,510  $   275,347
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Diluted earnings
     per share ($)        $      0.65  $      0.49  $      2.36  $      2.05
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic         151,073      150,901      151,042      150,925
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------
      Weighted average
       number of
       outstanding
       shares - Diluted       152,267      151,518      151,992      152,265
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Return on average
     shareholders'
     equity (ROASE) (1)                                    27.3%        29.1%
                                                    ------------ ------------
                                                    ------------ ------------

    Revenue backlog
     by activity
     at December 31
      Services                                      $ 1,464,900  $ 1,545,300
      Packages                                        4,197,500    3,508,000
      Operations and Maintenance                      2,596,100    2,196,200
      ICI                                             2,578,700    2,342,700
                                                    ------------ ------------
                                                    $10,837,200  $ 9,592,200
                                                    ------------ ------------
                                                    ------------ ------------

    -------------------------------------------------------------------------
    (1) Corresponds to the trailing 12-month after-tax earnings, divided by a
        trailing 13-month average shareholders' equity, excluding
        "accumulated other comprehensive income (loss)".

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

SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the fourth quarter and the year ended December 31, 2009.

For the fourth quarter 2009, net income increased to $98.7 million ($0.65 per share on a diluted basis), compared to $75.0 million ($0.49 per share on a diluted basis) for the comparable quarter in 2008. This increase mainly reflects higher contributions from the Power, Chemicals & Petroleum and Infrastructure Concession Investments segments, partially offset by lower contributions from the Mining & Metallurgy and Infrastructure & Environment segments.

For the year ended December 31, 2009, net income increased by 15.0% to $359.4 million ($2.36 per share on a diluted basis), compared to $312.5 million ($2.05 per share on a diluted basis) for the same period in 2008. The increase in net income for 2009 was mainly due to an overall increase in the gross margin-to-revenue ratio, primarily from the improved profitability in Packages activities, partially offset by a lower Services gross margin-to-revenue ratio and the expected lower level of activity in Packages. The main industry segment contributors to the increase in profitability for 2009 were Power and Infrastructure & Environment, partially offset by Chemicals & Petroleum and Mining & Metallurgy.

Year-to-date revenues for the year ended December 31, 2009 were lower, at $6.1 billion, compared to $7.1 billion for the year ended December 31, 2008, mainly reflecting an anticipated decrease in the Packages revenue category.

"I am pleased with what was accomplished in 2009. Even in a sluggish economy, we increased our net income by 15%, surpassing our long-term financial objective, and we increased our cash position and maintained a strong revenue backlog. We also made investments and acquisitions that expand our market share and move our business strategy forward," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "With a strong revenue backlog and diverse prospects in Canada and outside Canada, we expect our 2010 net income to be as high or higher than 2009."

The Company's balance sheet position remained solid, with cash and cash equivalents of $1.2 billion, compared to $988.2 million as at December 31, 2008. The increase mainly reflects cash generated from operations and the proceeds received from the issuance of 10-year unsecured debentures of $350 million, partially offset by cash used for investing activities.

Total revenue backlog for the Company's four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained strong at $10.8 billion at the end of December 2009, compared to $10.2 billion at the end of September 2009 and $9.6 billion at the end of December 2008. At the end of December 2009, both Services and Packages backlog remained strong at $1.5 billion and $4.2 billion respectively.

The Company's return on average shareholders' equity was 27.3% for the 12-month period ended December 31, 2009, compared to 29.1% for the same period last year.

Given the positive outlook and the Company's strong revenue backlog, the Board of Directors has increased the quarterly cash dividend by 13% to $0.17 per share, payable April 1, 2010 to shareholders of record on March 19, 2010. This represents the ninth consecutive year that the Company's dividend paid per share has been increased. 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 35 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com

    
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    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 Budget and Forecast Our Results
    and Basis for Providing Financial Guidance", respectively, in the
    Company's 2008 Annual 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.
    -------------------------------------------------------------------------
    

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: For further information: Investors: Denis Jasmin, Vice-President, Investor Relations, (514) 393-8000, ext. 7553, denis.jasmin@snclavalin.com; Media: Leslie Quinton, Vice-President, Global Corporate Communications, (514) 393-8000, ext. 7354, leslie.quinton@snclavalin.com


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