SNC-Lavalin announces third quarter and year-to-date results for 2007



    
                                 Highlights

    - For the third quarter of 2007, net income was $63.2 million ($0.41 per
      share on a diluted basis) compared to a net income of $42.7 million
      ($0.28 per share on a diluted basis) for the same period last year, an
      increase of 48%.

    - For the nine-month period ended September 30, net income was
      $84.5 million in 2007 compared to $107.7 million for the same period in
      2006. This lower result is mainly due to the operating loss in the
      Power segment.

    - Year-to-date revenues increased to $4.7 billion from $3.5 billion for
      the corresponding period last year.

    - Backlog at the end of September 2007 remains strong at $9.8 billion.

    - Cash and cash equivalents were $1.1 billion at the end of
      September 2007.

    - The Board of Directors declared a cash dividend of $0.09 per share for
      the third quarter of 2007.
    

    MONTREAL, Nov. 2 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

    (in thousands of                                       Nine months ended
     Canadian dollars,           Third Quarter                  September 30
     unless otherwise --------------------------  ---------------------------
     indicated)               2007          2006          2007          2006
    --------------------------------------------  ---------------------------

    Revenues
      Services        $    430,398  $    282,501  $  1,210,974  $    804,426
      Packages           1,049,415       727,136     2,556,615     1,869,844
      Operations and
       Maintenance         220,570       200,385       737,441       674,345
      Infrastructure
       Concession
       Investments          84,875        73,487       235,070       136,120
                      --------------------------  ---------------------------
                      $  1,785,258  $  1,283,509  $  4,740,100  $  3,484,735
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------

    Net income from
     continuing
     operations       $     63,170  $     39,107  $        376  $     91,993
    Net income from
     discontinued
     operations                  -         3,600        84,086        15,662
                      --------------------------  ---------------------------
    Net income              63,170        42,707        84,462       107,655
    Net income from
     Highway 407             5,769         6,653         6,179         6,624
                      --------------------------  ---------------------------
    Net income,
     excluding
     Highway 407      $     57,401  $     36,054  $     78,283  $    101,031
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------

    Diluted earnings
     per share from
     continuing
     operations ($)   $       0.41  $       0.26  $       0.00  $       0.60
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------
    Diluted earnings
     per share ($)    $       0.41  $       0.28  $       0.55  $       0.71
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------

    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic      151,387       151,014       151,201       151,065
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------
      Weighted average
       number of
       outstanding
       shares - Diluted    152,693       152,497       152,649       152,684
                      --------------------------  ---------------------------
                      --------------------------  ---------------------------

    Return on average
     shareholders'
     equity (ROASE),
     excluding
     Highway 407                                          14.1%         18.1%
                                                  ------------- -------------
                                                  ------------- -------------

    Backlog at
     September 30
      Services                                    $  1,244,900  $    797,300
      Packages                                       4,326,200     6,591,400
      Operations and
       Maintenance                                   2,071,000     1,665,800
      Infrastructure
       Concession
       Investments                                   2,162,700     1,905,700
                                                  ------------- -------------
                                                  $  9,804,800  $ 10,960,200
                                                  ------------- -------------
                                                  ------------- -------------

    -------------------------------------------------------------------------
    (1) SNC-Lavalin's proportionate share of 407 International Inc. results
        is referred to as "Highway 407".
    (2) Certain 2006 figures have been reclassified to conform with the
        presentation adopted in 2007.
    

    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 period ended September 30, 2007.
    For the third quarter, net income was $63.2 million ($0.41 per share on a
diluted basis) compared to a net income of $42.7 million ($0.28 per share on a
diluted basis) for the comparable quarter in 2006. This increase in net income
of 48% is mainly due to higher operating income in the Mining & Metallurgy and
Infrastructure & Environment segments.
    For the nine-month period ended September 30, 2007, net income was
$84.5 million ($0.55 per share on a diluted basis), compared to $107.7 million
($0.71 per share on a diluted basis) for the same period in 2006. The decrease
is mainly due to the operating loss in the Power segment, partly offset by the
net gain on disposal of SNC Technologies, and by higher operating income
derived mainly from the Mining & Metallurgy and Chemicals & Petroleum
segments.
    "I am pleased with the results we achieved in the third quarter," said
Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc.
"It was a strong quarter for most of our operating segments and we expect our
year-end results will be in line with those of 2006, despite the performance
to date in the Power sector."
    For the third quarter and year-to-date, revenues increased by 39% to
$1.8 billion and by 36% to $4.7 billion, respectively, compared to the same
periods in 2006, due to increased revenues in all of our operating segments.
    The Company's backlog at the end of September 2007 remains strong at
$9.8 billion, compared to $10.4 billion at the end of December 2006, as
Services backlog increased and Packages backlog decreased.
    The Company's financial position remains solid with cash and cash
equivalents of $1.1 billion at September 30, 2007.
    The Board of Directors today declared a cash dividend of $0.09 per share
payable November 29, 2007 to shareholders of record on November 15, 2007. 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 34 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 forward-looking terminology such as
    "believes", "expects", "may", "will", "should", "estimates",
    "anticipates", 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.
    -------------------------------------------------------------------------

    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, Public Relations, (514) 393-8000,
ext. 7354, gillian.maccormack@snclavalin.com; SNC-Lavalin Web Site:
www.snclavalin.com; SNC-Lavalin Group Inc., (514) 393-1000


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