SNC-Lavalin announces its results for the second quarter and six-month
periods ended June 30, 2010

    
                                 Highlights

    - For the second quarter 2010, net income increased to $97.7 million
      ($0.64 per share on a diluted basis), compared to $80.0 million ($0.53
      per share on a diluted basis) for the second quarter 2009.

    - For the six-month period ended June 30, 2010, net income increased by
      7.7% to $169.6 million ($1.11 per share on a diluted basis), compared
      to $157.5 million ($1.04 per share on a diluted basis) for the same
      period in 2009.

    - Revenues for the six-month period ended June 30, 2010 were $2.8 billion
      compared to $3.1 billion for the six-month period ended June 30, 2009.

    - Total revenue backlog for the four revenue categories: Services,
      Packages, Operations & Maintenance and Infrastructure Concession
      Investments remained strong at $11.4 billion at the end of June 2010,
      in line with the end of March 2010, and compared to $10.8 billion at
      the end of December 2009. The June 2010 backlog does not include the
      McGill University Health Centre Package contract, which will be added
      in the third quarter.

    - Balance sheet position remained solid with cash and cash equivalents of
      $1.1 billion at June 30, 2010.

    - Return on average shareholders' equity was 25.7% for the 12-month
      period ended June 30, 2010.

    - The Board of Directors declared a cash dividend of $0.17 per share for
      the second quarter 2010.
    

MONTREAL, Aug. 6, 2010 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                             Second Quarter         Six months ended June 30
                      --------------------------- ---------------------------
    (in thousands of
     Canadian dollars,
     unless otherwise
     indicated)               2010          2009          2010          2009
    --------------------------------------------- ---------------------------

    Revenues by
     activity
      Services        $    501,556  $    568,766  $    958,812  $  1,128,607
      Packages             537,757       575,497       985,195     1,142,323
      Operations and
       Maintenance         255,869       241,294       639,081       650,669
      Infrastructure
       Concession
       Investments
       (ICI)               130,910        84,794       229,194       174,497
                      ------------- ------------- ------------- -------------
                      $  1,426,092  $  1,470,351  $  2,812,282  $  3,096,096
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Net income
     excluding ICI    $     72,986  $     79,671  $    136,243  $    152,772
    SNC-Lavalin's net
     income from ICI        24,730           360        33,393         4,744
                      ------------- ------------- ------------- -------------
    Net income        $     97,716  $     80,031  $    169,636  $    157,516
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Diluted earnings
     per share ($)    $       0.64  $       0.53  $       1.11  $       1.04
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Shares
     outstanding (in
     thousands)
      Weighted
       average number
       of outstanding
       shares - Basic      150,932       151,040       150,962       151,012
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
      Weighted
       average number
       of outstanding
       shares -
       Diluted             152,000       151,676       152,176       151,605
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Return on average
     shareholders'
     equity (ROASE)(1)                                    25.7%         27.3%
                                                  ------------- -------------
                                                  ------------- -------------


                                                         As at         As at
    Backlog by                                         June 30   December 31
     activity                                             2010          2009
                                                  ------------- -------------
      Services                                    $  1,485,400  $  1,464,900
      Packages                                       4,348,300     4,197,500
      Operations and
       Maintenance                                   2,808,800     2,596,100
      ICI                                            2,740,500     2,578,700
                                                  ------------- -------------
                                                  $ 11,383,000  $ 10,837,200
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------
    (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 second quarter and six-month periods ended June 30, 2010.

Net income for the second quarter 2010 increased to $97.7 million ($0.64 per share on a diluted basis) compared to $80.0 million ($0.53 per share on a diluted basis) for the second quarter 2009, reflecting a higher operating income from the Infrastructure Concession Investments and Chemicals & Petroleum segments, partially offset by a lower operating income in the Mining & Metallurgy and Infrastructure & Environment segments.

For the six-month period ended June 30, 2010, net income increased by 7.7% to $169.6 million ($1.11 per share on a diluted basis) compared to $157.5 million ($1.04 per share on a diluted basis) for the corresponding period of 2009. This reflects a higher net income from Infrastructure Concession Investments partially offset by a lower net income excluding Infrastructure Concession Investments. The net income from Infrastructure Concession Investments was $33.4 million compared to $4.7 million for the first half of 2009 reflecting mainly a higher net income from AltaLink and Highway 407, as well as Shariket Kahraba Hadjret En Nouss S.p.A. ("SKH"), which owns, operates and maintains a power plant in Algeria that started operations in the second half of 2009. Net income excluding Infrastructure Concession Investments was $136.2 million for the first half of 2010 compared to $152.8 million for the same period of 2009. This decrease was mainly due to a lower operating income in the Mining & Metallurgy and Infrastructure & Environment segments, while the Chemicals & Petroleum and Operations & Maintenance segments have generated higher operating income.

Revenues for the six-month period ended June 30, 2010 were $2.8 billion, compared to $3.1 billion for the same period in 2009, mainly reflecting lower revenues from Services and Packages activities.

"We achieved good results in the first half of the year; our net income increased, and our backlog and cash position remain solid. Based on these good results, we now expect our 2010 net income to be higher than in 2009. We also continue to expect our 2010 revenues to be higher in the second half of the year compared to the corresponding period in 2009," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc.

"We are pleased to have been awarded the McGill University Health Centre public-private partnership project, for which financial closure and the official signing were completed on July 15. It will add $1.6 billion to our Packages backlog in the third quarter 2010," added Mr. Duhaime.

Total revenue backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments remained strong at $11.4 billion at the end of June 2010, in line with the end of March 2010, and compared to $10.8 billion at the end of December 2009.

The Company's balance sheet position remains solid with cash and cash equivalents of $1.1 billion at June 30, 2010.

The Company's return on average shareholders' equity was 25.7% for the 12-month period ended June 30, 2010.

The Board of Directors today declared a cash dividend of $0.17 per share payable September 3, 2010 to shareholders of record on August 20, 2010. 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 Analyze and Report our Results",
    respectively, in the Company's 2009 Financial 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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