SNC-Lavalin announces its results for the second quarter and six-month periods ended June 30, 2008



    
    Highlights

    - For the second quarter of 2008, net income was $75.4 million ($0.49 per
      share on a diluted basis) compared to a net income of $41.1 million
      ($0.27 per share on a diluted basis) for the same period last year.

    - For the six-month period ended June 30, net income was $146.3 million
      ($0.96 per share on a diluted basis) in 2008 compared to $21.3 million
      ($0.14 per share on a diluted basis) for the same period in 2007, which
      included a pre-tax operating loss of $214.4 million from the Power
      segment and a net income from discontinued operations of $84.1 million
      representing the net gain after taxes on the sale of SNC Technologies.

    - Year-to-date revenues increased to $3.5 billion compared to
      $3.0 billion for the six-month period ended June 30, 2007.

    - Backlog for our four categories of revenues: Services, Packages,
      Operations & Maintenance and Infrastructure Concession Investments,
      totalled $9.4 billion at the end of June 2008.

    - Cash and cash equivalents remained solid at $946 million at June 30,
      2008.

    - The Board of Directors declared a cash dividend of $0.12 per share for
      the second quarter of 2008.
    

    MONTREAL, July 30, 2008 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

    (in thousands of                                     Six months ended
    Canadian dollars,          Second Quarter                 June 30
    unless otherwise   --------------------------  --------------------------
    indicated)                 2008          2007         2008          2007
    ---------------------------------------------  --------------------------
    Revenues
      Services          $   567,223  $    426,932  $ 1,044,717  $    780,576
      Packages              795,901       981,913    1,659,590     1,507,200
      Operations and
       Maintenance          250,308       200,255      605,788       516,871
      Infrastructure
       Concession
       Investments
       (ICI)                 89,056        77,556      167,484       150,195
                        ------------ ------------- ------------ -------------
                        $ 1,702,488  $  1,686,656  $ 3,477,579  $  2,954,842
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------

    Net income (loss)
     from continuing
     operations         $    75,411  $     41,144  $   146,263  $    (62,794)
    Net income from
     discontinued
     operations                   -             -            -        84,086
                        ------------ ------------- ------------ -------------
    Net income               75,411        41,144      146,263        21,292
    SNC-Lavalin's net
     income (loss)
     from ICI:
      From Highway
       407(1)                (1,481)        1,879       (3,472)          410
      From other ICI          5,356         3,130        7,783         6,117
                        ------------ ------------- ------------ -------------
    Net income
     excluding ICI      $    71,536   $    36,135  $   141,952  $     14,765
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------

    Diluted earnings
     (loss) per share
     from continuing
     operations
     ($)(2)             $      0.49   $      0.27  $      0.96  $      (0.42)
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------
    Diluted earnings
     per share ($)      $      0.49   $      0.27  $      0.96  $       0.14
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------

    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic       151,037       151,222      150,991       151,107
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------
      Weighted average
       number of
       outstanding
       shares - Diluted     152,803       152,690      152,615       152,609
                        ------------ ------------- ------------ -------------
                        ------------ ------------- ------------ -------------

     Return on average
     shareholders'
     equity (ROASE)(3)                                    28.2%         12.9%
                                                   ------------ -------------
                                                   ------------ -------------

    Backlog at June 30
      Services                                     $ 1,604,000  $  1,155,600
      Packages                                       3,353,000     5,094,500
      Operations and
       Maintenance                                   2,223,500     2,157,800
      Infrastructure
       Concession
       Investments
       (ICI)                                         2,213,900     2,122,300
                                                   ------------ -------------
                                                   $ 9,394,400  $ 10,530,200
                                                   ------------ -------------
                                                   ------------ -------------

    -------------------------------------------------------------------------
    (1) SNC-Lavalin's proportionate share of 407 International Inc. results
        is referred to as "Highway 407".
    (2) For the six-month period ended June 30, 2007, the dilutive effect of
        stock options has been excluded from the calculations of the diluted
        loss per share from continuing operations since it was anti-dilutive.
    (3) 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 2007 figures have been reclassified to conform with the
presentation adopted in 2008.


    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
second quarter and six-month periods ended June 30, 2008.
    For the second quarter of 2008, net income was $75.4 million ($0.49 per
share on a diluted basis) compared to a net income of $41.1 million ($0.27 per
share on a diluted basis) for the comparable quarter in 2007. The increase is
mainly due to higher operating income in the Infrastructure & Environment and
Mining & Metallurgy segments, as well as a lower operating loss in the Power
segment.
    For the six-month period ended June 30, net income was $146.3 million
($0.96 per share on a diluted basis) in 2008 compared to $21.3 million
($0.14 per share on a diluted basis) for the same period in 2007, which
included a net income from discontinued operations of $84.1 million
representing the net gain after taxes on the sale of SNC Technologies. From
continuing operations, net income was $146.3 million in the first half of 2008
compared to a net loss of $62.8 million for the same period in 2007. The
difference is mainly explained by the operating loss in the Power segment in
the first six months of 2007, coupled with a higher operating income in the
Chemicals & Petroleum and Mining & Metallurgy segments in the first half of
2008 compared to the same period in 2007.
    Year-to-date revenues increased by 18% to $3.5 billion compared to
$3.0 billion for the six-month period ended June 30, 2007 due to increased
activities in all categories of revenues.
    The Company's backlog for our four categories of revenues: Services,
Packages, Operations & Maintenance and Infrastructure Concession Investments,
totalled $9.4 billion at the end of June 2008 compared to $10.0 billion at the
end of March 2008, and $10.5 billion at the end of June 2007.
    "We delivered solid results in the first six months of 2008," said
Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc.
"The operating income in most of our segments is up compared to last year, our
cash position remained solid and our list of prospects remains promising. We
are satisfied with the quality of our backlog at the end of June 2008. While
the total backlog is lower, a higher portion relates to Services, which have a
higher gross margin-to-revenue ratio compared with Packages and Operations &
Maintenance activities. We remain optimistic for upcoming quarters and
maintain our 2008 outlook for substantial growth in profitability in 2008
compared to 2007."
    The Company's balance sheet position remained solid with cash and cash
equivalents of $946 million at June 30, 2008.
    The Board of Directors today declared a cash dividend of $0.12 per share
payable August 27, 2008 to shareholders of record on August 13, 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, Global Public Relations, (514)
393-8000, ext. 7354, gillian.maccormack@snclavalin.com; SNC-Lavalin Group
Inc., (514) 393-1000; www.snclavalin.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890