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
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$ 1,426,092 $ 1,470,351 $ 2,812,282 $ 3,096,096
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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
------------- -------------
------------- -------------
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(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
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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.
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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: Investors: Denis Jasmin, Vice-President, Investor Relations, 514-393-8000, ext. 7553, [email protected]; Media: Leslie Quinton, Vice-President, Global Corporate Communications, 514-393-8000, ext. 7354, [email protected]
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