SNC-Lavalin announces its results for the third quarter and nine-month periods ended September 30, 2008



    
    Highlights

    - For the third quarter of 2008, net income was $91.3 million ($0.60 per
      share on a diluted basis) compared to a net income of $63.2 million
      ($0.41 per share on a diluted basis) for the third quarter of 2007.

    - For the first nine months of 2008, net income was $237.6 million
      ($1.56 per share on a diluted basis) compared to $84.5 million
      ($0.55 per share on a diluted basis) for the corresponding period in
      2007, which included a pre-tax operating loss of $214.7 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 $5.2 billion compared to
      $4.7 billion for the nine-month period ended September 30, 2007.

    - Backlog for its four revenue categories: Services, Packages, Operations
      & Maintenance and Infrastructure Concession Investments, remained
      strong at $9.7 billion at the end of September 2008.

    - The Company's financial position remained solid with cash and cash
      equivalents of $798 million at September 30, 2008.

    - Return on average shareholders' equity was 29.7% for the 12-month
      period ended September 30, 2008.

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

    MONTREAL, Oct. 31, 2008 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                                                          Nine months ended
                                Third Quarter                September 30
                       --------------------------  --------------------------
    (in thousands of
     Canadian dollars,
     unless otherwise
     indicated)               2008          2007          2008          2007
    ---------------------------------------------  --------------------------

    Revenues
      Services         $   548,714   $   430,398   $ 1,593,431   $ 1,210,974
      Packages             791,381     1,049,415     2,450,971     2,556,615
      Operations and
       Maintenance         249,623       220,570       855,411       737,441
      Infrastructure
       Concession
       Investments
       (ICI)                95,657        84,875       263,141       235,070
                       ------------  ------------  ------------  ------------
                       $ 1,685,375   $ 1,785,258   $ 5,162,954   $ 4,740,100
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


    Net income from
     continuing
     operations        $    91,302   $    63,170   $   237,565   $       376
    Net income from
     discontinued
     operations                  -             -             -        84,086
                       ------------  ------------  ------------  ------------
    Net income              91,302        63,170       237,565        84,462
    SNC-Lavalin's net
     income from ICI:
      From Highway
       407 (1)              10,125         5,769         6,653         6,179
      From other ICI         9,129         6,714        16,912        12,831
                       ------------  ------------  ------------  ------------
    Net income
     excluding ICI     $    72,048   $    50,687   $   214,000   $    65,452
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    Diluted earnings
     per share from
     continuing
     operations ($)    $      0.60   $      0.41   $      1.56   $      0.00
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
    Diluted earnings
     per share ($)     $      0.60   $      0.41   $      1.56   $      0.55
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic      150,816       151,387       150,933       151,201
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
      Weighted average
       number of
       outstanding
       shares - Diluted    152,226       152,693       152,518       152,649
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    Return on average
     shareholders'
     equity (ROASE)(2)                                    29,7%         14,9%
                                                   ------------  ------------
                                                   ------------  ------------

    Backlog at
     September 30
      Services                                     $ 1,630,000   $ 1,244,900
      Packages                                       3,813,000     4,326,200
      Operations and
       Maintenance                                   2,027,200     2,071,000
      Infrastructure
       Concession
       Investments (ICI)                             2,265,800     2,162,700
                                                   ------------  ------------
                                                   $ 9,736,000   $ 9,804,800
                                                   ------------  ------------
                                                   ------------  ------------

    -------------------------------------------------------------------------
    (1) SNC-Lavalin's proportionate share of 407 International Inc. results
        is referred to as "Highway 407".
    (2) 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
third quarter and nine-month periods ended September 30, 2008.
    For the third quarter of 2008, net income was $91.3 million ($0.60 per
share on a diluted basis) compared to a net income of $63.2 million ($0.41 per
share on a diluted basis) for the third quarter of 2007. The increase is
mainly due to higher operating income in the Mining & Metallurgy and
Infrastructure & Environment segments.
    For the first nine months of 2008, net income was $237.6 million
($1.56 per share on a diluted basis) compared to $84.5 million ($0.55 per
share on a diluted basis) for the corresponding 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 $237.6 million for the first nine months of 2008
compared to a net income of $0.4 million for the same period in 2007. The
difference is mainly explained by the operating loss in the Power segment in
the first nine months of 2007, coupled with a higher operating income in the
Chemicals & Petroleum, Mining & Metallurgy, All Other and Infrastructure &
Environment segments for the nine-month period ended September 30, 2008
compared to the corresponding period in 2007.
    "We achieved solid results in the third quarter of 2008 and I am pleased
with our performance in the first nine months of 2008," said Jacques Lamarre,
President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are on the
right track for substantial growth in profitability in 2008 compared to 2007."
    Revenues for the nine-month period ended September 30, 2008 increased by
8.9% to $5.2 billion compared to $4.7 billion for the same period in 2007.
This increase was mainly due to increased activities in the Services and
Operations & Maintenance revenue categories.
    The Company's backlog for its four revenue categories: Services,
Packages, Operations & Maintenance and Infrastructure Concession Investments,
remained strong at $9.7 billion at the end of September 2008 compared to
$9.4 billion at the end of June 2008, and $9.8 billion at the end of September
2007.
    "The current global financial crisis brings uncertainties to our
business," said Mr. Lamarre. "Given the many different sectors and countries
we are working in, our flexibility, our backlog and our prospect list, we
remain positive about upcoming quarters."
    The Company's financial position remained solid with cash and cash
equivalents of $798 million at September 30, 2008.
    The Company's return on average shareholders' equity was 29.7% for the
12-month period ended September 30, 2008, compared to 14.9% for the same
period last year.
    The Board of Directors declared a cash dividend of $0.12 per share
payable November 27, 2008 to shareholders of record on November 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 over 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


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