SNC-Lavalin announces its results for the second quarter and six-month periods ended June 30, 2009



    
                                 Highlights

    - Net income for the second quarter of 2009 increased to $80.0 million
      ($0.53 per share on a diluted basis), compared to $75.4 million ($0.49
      per share on a diluted basis) for the second quarter of 2008.
    - For the six-month period ended June 30, 2009, net income increased by
      7.7% to $157.5 million ($1.04 per share on a diluted basis), compared
      to $146.3 million ($0.96 per share on a diluted basis) for the same
      period in 2008.
    - Year-to-date revenues for the six-month period ended June 30, 2009 were
      lower at $3.1 billion compared to $3.5 billion for the six-month period
      ended June 30, 2008, mainly due to a decrease in Packages activities.
    - Total backlog for the four revenue categories: Services, Packages,
      Operations & Maintenance and Infrastructure Concession Investments,
      totalled $9.9 billion at the end of June 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 second quarter of 2009.
    - On July 3, 2009, the Company issued $350 million of 10-year unsecured
      debentures.
    

    MONTREAL, Aug. 7, 2009 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                                                          Six months ended
                                    Second Quarter             June 30
                              ----------------------- -----------------------
    (in thousands of
     Canadian dollars,
     unless otherwise indicated)    2009        2008        2009        2008
    ------------------------------------------------- -----------------------

    Revenues by activity
      Services                $  568,766  $  567,223  $1,128,607  $1,044,717
      Packages                   575,497     795,901   1,142,323   1,659,590
      Operations and
       Maintenance               241,294     250,308     650,669     605,788
      Infrastructure
       Concession
       Investments (ICI)          84,794      89,056     174,497     167,484
                              ----------- ----------- ----------- -----------
                              $1,470,351  $1,702,488  $3,096,096  $3,477,579
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Net income                $   80,031  $   75,411  $  157,516  $  146,263
    SNC-Lavalin's net
     income from ICI                 360       3,875       4,744       4,311
                              ----------- ----------- ----------- -----------
    Net income excluding
     ICI                      $   79,671  $   71,536  $  152,772  $  141,952
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Diluted earnings per
     share ($)                $     0.53  $     0.49  $     1.04  $     0.96
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


    Shares outstanding
     (in thousands)
      Weighted average
       number of outstanding
       shares - Basic            151,040     151,037     151,012     150,991
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
      Weighted average
       number of outstanding
       shares - Diluted          151,676     152,803     151,605     152,615
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Return on average
     shareholders' equity
     (ROASE)(1)                                             27.3%       28.2%
                                                      ----------- -----------
                                                      ----------- -----------

    Backlog by activity
     at June 30
      Services                                        $1,612,100  $1,604,000
      Packages                                         3,809,900   3,353,000
      Operations and
       Maintenance                                     2,004,900   2,223,500
      ICI                                              2,487,300   2,213,900
                                                      ----------- -----------
                                                      $9,914,200  $9,394,400
                                                      ----------- -----------
                                                      ----------- -----------

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

    N.B.: All amounts indicated 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, 2009.
    Net income for the second quarter of 2009 was $80.0 million ($0.53 per
share on a diluted basis), compared to $75.4 million ($0.49 per share on a
diluted basis) for the second quarter of 2008. This increase was mainly due to
higher contributions from the Power and Infrastructure & Environment segments,
partially offset by a loss in Chemicals & Petroleum.
    For the six-month period ended June 30, 2009, net income increased by
7.7% to $157.5 million ($1.04 per share on a diluted basis), compared to
$146.3 million ($0.96 per share on a diluted basis) for the same period in
2008. The increase is mainly explained by higher operating income in the
Infrastructure & Environment and Power segments, partially offset by the
Chemicals & Petroleum segment which recorded a loss in the first six months of
2009.
    Year-to-date revenues for the six-month period ended June 30, 2009 were
lower at $3.1 billion compared to $3.5 billion for the six-month period ended
June 30, 2008, mainly reflecting an expected decrease in Packages activities,
partially offset by increased Services and Operations & Maintenance
activities.
    "We achieved good results in the second quarter of 2009, despite a
disappointing performance in the Chemicals & Petroleum segment; our backlog
increased and our year-to-date results are in line with our expected net
income growth for 2009," said Pierre Duhaime, President and Chief Executive
Officer, SNC-Lavalin Group Inc. "We continue to expect a net income growth of
7% to 12% in 2009, in line with our long-term financial objective."
    The Company's financial position remained strong with cash and cash
equivalents of $635.6 million, compared to $988.2 million as at December 31,
2008. The variance is mainly due to working capital requirements on certain
major Packages projects, the acquisition of property and equipment by
Infrastructure Concession Investments and payments related to Infrastructure
Concession Investments.
    Total backlog for the four revenue categories: Services, Packages,
Operations & Maintenance and Infrastructure Concession Investments, totalled
$9.9 billion at the end of June 2009, compared to $9.0 billion at the end of
March 2009 and $9.6 billion at the end of December 2008. At the end of June
2009, Packages backlog increased to $3.8 billion compared to $3.2 billion at
the end of March 2009, mainly due to the Chemicals & Petroleum segment.
Services backlog remained in line with March 2009 level at $1.6 billion.
    Subsequent to quarter-end, on July 3, 2009, the Company completed a
public debt issuance of $350 million of 10-year unsecured debentures due July
3, 2019, which will bear interest at the rate of 6.19% per annum. The Company
expects to use the net proceeds from this issuance to fully repay its $105
million principal amount 7.7% unsecured debentures due in September 2010, to
fund potential investments in Infrastructure Concession Investments
opportunities and potential selective business acquisitions, and for general
corporate purposes.
    The Board of Directors today declared a cash dividend of $0.15 per share
payable September 4, 2009 to shareholders of record on August 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 2008 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.
    -------------------------------------------------------------------------
    

    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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