SNC-Lavalin announces its first quarter results for 2009



    
    Highlights

    - Net income for the first quarter 2009 increased to $77.5 million
      ($0.51 per share on a diluted basis) from $70.8 million ($0.47 per
      share on a diluted basis) for the first quarter 2008.
    - Revenues for the first quarter 2009 were lower, at $1.6 billion,
      compared to $1.8 billion for the same period in 2008, mainly due to
      decreased activities in Packages.
    - Financial position remained strong with cash and cash equivalents of
      $872.3 million at March 31, 2009.
    - Return on average shareholders' equity was 28.2% for the 12-month
      period ended March 31, 2009.
    - Total backlog for the four revenue categories: Services, Packages,
      Operations & Maintenance and Infrastructure Concession Investments,
      totalled $9.0 billion at the end of March 2009, compared to
      $9.6 billion at the end of December 2008.
    - The Board of Directors declared a cash dividend of $0.15 per share for
      the first quarter 2009.
    

    MONTREAL, May 7, 2009 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                                                          First quarter
                                                  ---------------------------
    (in thousands of
     Canadian dollars,
     unless otherwise indicated)                        2009            2008
    ---------------------------------------------------------    -----------

    Revenues by activity
      Services                                   $   559,841     $   477,494
      Packages                                       566,826         863,689
      Operations and Maintenance                     409,375         355,480
      Infrastructure Concession
       Investments (ICI)                              89,703          78,428
                                                 ------------    ------------
                                                 $ 1,625,745     $ 1,775,091
                                                 ------------    ------------
                                                 ------------    ------------

    Net income                                   $    77,485     $    70,852
    SNC-Lavalin's net income from ICI                  4,384             436
                                                 ------------    ------------
    Net income excluding ICI                     $    73,101     $    70,416
                                                 ------------    ------------
                                                 ------------    ------------

    Diluted earnings per share ($)                     $0.51           $0.47
                                                 ------------    ------------
                                                 ------------    ------------

    Shares outstanding (in thousands)
      Weighted average number of
       outstanding shares - Basic                    150,983         150,946
                                                 ------------    ------------
                                                 ------------    ------------
      Weighted average number of
       outstanding shares - Diluted                  151,471         152,365
                                                 ------------    ------------
                                                 ------------    ------------

    Return on average shareholders' equity
     (ROASE) (1)                                        28.2%           25.8%
                                                 ------------    ------------
                                                 ------------    ------------

    Backlog by activity at March 31
      Services                                   $ 1,520,400     $ 1,557,700
      Packages                                     3,154,500       3,901,400
      Operations and Maintenance                   1,893,500       2,393,700
      ICI                                          2,412,300       2,157,600
                                                 ------------    ------------
                                                 $ 8,980,700     $10,010,400
                                                 ------------    ------------
                                                 ------------    ------------

    -------------------------------------------------------------------------
    (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)".

    Certain 2008 figures have been reclassified to conform with the
    presentation adopted in 2009.
    

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

    SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the
first quarter ended March 31, 2009.
    Net income for the first quarter 2009 increased to $77.5 million ($0.51
per share on a diluted basis) from $70.8 million ($0.47 per share on a diluted
basis) for the first quarter 2008. The higher net income was mainly due to
higher contributions from the Infrastructure & Environment, Mining &
Metallurgy and Infrastructure Concession Investments segments, partially
offset by a loss in the Chemicals & Petroleum segment.
    Revenues for the first quarter 2009 were lower, at $1.6 billion, compared
to $1.8 billion for the same period in 2008. The variation mainly reflects
decreased activities in Packages, partially offset by increased revenues in
Services and Operations & Maintenance.
    "We are pleased with our solid results for the first quarter 2009 and
remain positive for the year ahead," said Jacques Lamarre, President and Chief
Executive Officer, SNC-Lavalin Group Inc. "It is with great pride and
confidence in SNC-Lavalin's future that I pass the baton today to my
successor, Pierre Duhaime. I know that he will lead SNC-Lavalin to new and
exciting heights."
    The Company's financial position remained strong with cash and cash
equivalents of $872.3 million at March 31, 2009.
    The Company's return on average shareholders' equity was 28.2% for the
12-month period ended March 31, 2009, compared to 25.8% for the same period
last year.
    The Company's total backlog for the four revenue categories: Services,
Packages, Operations & Maintenance and Infrastructure Concession Investments,
totalled $9.0 billion at the end of March 2009, compared to $9.6 billion at
the end of December 2008, and $10.0 billion at the end of March 2008. At the
end of March 2009, Packages backlog decreased to $3.2 billion compared to $3.5
billion at the end of December 2008, and $3.9 billion at the end of March
2008, while Services backlog remained solid at $1.5 billion, in line with
December and March 2008.
    "It is an honour and a privilege for me to be taking over the leadership
of SNC-Lavalin, and I look forward to this new challenge," said Pierre
Duhaime, incoming President and Chief Executive Officer, SNC-Lavalin Group
Inc. "The year is off to a good start. Given these results, our backlog and
our list of prospects, we continue to strive for a net income growth of 7% to
12% in 2009, but remain cautious as the global economic situation is difficult
to predict."
    The Board of Directors today declared a cash dividend of $0.15 per share
payable June 4, 2009 to shareholders of record on May 21, 2009. 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

    -------------------------------------------------------------------------
    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 Annual Report under "Management's Discussion and Analysis", and
    under the section "Caution regarding forward-looking statements" of the
    Company's most recent Annual Information Form filed with the securities
    regulatory authorities in Canada, available at SEDAR (www.sedar.com).
    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.
    -------------------------------------------------------------------------

    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 Web site 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, Global Public Relations, (514)
393-8000, ext. 7354, gillian.maccormack@snclavalin.com


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