SNC-Lavalin announces its results for the third quarter and nine-month
periods ended September 30, 2009

    
                                 Highlights

    - Net income for the third quarter of 2009 increased to $103.1 million
      ($0.68 per share on a diluted basis), compared to $91.3 million
      ($0.60 per share on a diluted basis) for the third quarter of 2008.
    - For the nine-month period ended September 30, 2009, net income
      increased by 9.7% to $260.7 million ($1.72 per share on a diluted
      basis), compared to $237.6 million ($1.56 per share on a diluted basis)
      for the same period in 2008.
    - Year-to-date revenues for the nine-month period ended September 30,
      2009 were lower, at $4.5 billion, compared to $5.2 billion for the
      nine-month period ended September 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,
      remained solid at $10.2 billion at the end of September 2009, compared
      to $9.6 billion at the end of December 2008.
    - Financial position remained strong with cash and cash equivalents of
      $1.2 billion at September 30, 2009.
    - The Board of Directors declared a cash dividend of $0.15 per share for
      the third quarter of 2009.
    

MONTREAL, Nov. 6, 2009 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)

                                                       Nine months ended
                                Third Quarter             September 30
                         ------------------------  --------------------------
    (in thousands of
     Canadian dollars,
     unless otherwise
     indicated)                 2009         2008         2009         2008
    ---------------------------------------------  --------------------------

    Revenues by activity
      Services           $   535,647  $   548,714  $ 1,664,254  $ 1,593,431
      Packages               472,523      791,380    1,614,846    2,450,970
      Operations and
       Maintenance           311,934      249,624      962,603      855,412
      Infrastructure
       Concession
       Investments (ICI)     102,324       95,657      276,821      263,141
                         ------------ ------------ ------------ -------------
                         $ 1,422,428  $ 1,685,375  $ 4,518,524  $ 5,162,954
                         ------------ ------------ ------------ -------------
                         ------------ ------------ ------------ -------------


    Net income           $   103,144  $    91,302  $   260,660  $   237,565
    SNC-Lavalin's net
     income from ICI           9,451       19,254       14,195       23,565
                         ------------ ------------ ------------ -------------
    Net income
     excluding ICI       $    93,693  $    72,048  $   246,465  $   214,000
                         ------------ ------------ ------------ -------------
                         ------------ ------------ ------------ -------------


    Diluted earnings
     per share ($)             $0.68        $0.60        $1.72        $1.56
                         ------------ ------------ ------------ -------------
                         ------------ ------------ ------------ -------------


    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic        151,070      150,816      151,031      150,933
                         ------------ ------------ ------------ -------------
                         ------------ ------------ ------------ -------------
      Weighted average
       number of
       outstanding
       shares - Diluted      152,218      152,226      151,860      152,518
                         ------------ ------------ ------------ -------------
                         ------------ ------------ ------------ -------------


    Return on average
     shareholders' equity
     (ROASE)(1)                                           26.9%        29.7%
                                                   ------------ -------------
                                                   ------------ -------------


    Backlog by activity
     at September 30
      Services                                     $ 1,570,200  $ 1,630,000
      Packages                                       3,495,200    3,813,000
      Operations and Maintenance                     2,587,000    2,027,200
      ICI                                            2,543,700    2,265,800
                                                   ------------ -------------
                                                   $10,196,100  $ 9,736,000
                                                   ------------ -------------
                                                   ------------ -------------

    -------------------------------------------------------------------------
    (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 third quarter and nine-month periods ended September 30, 2009.

Net income for the third quarter of 2009 was $103.1 million ($0.68 per share on a diluted basis), compared to $91.3 million ($0.60 per share on a diluted basis) for the third quarter of 2008.

For the nine-month period ended September 30, 2009, net income increased by 9.7% to $260.7 million ($1.72 per share on a diluted basis), compared to $237.6 million ($1.56 per share on a diluted basis) for the same period in 2008.

The increase in net income for both the third quarter and the first nine months of 2009 was mainly due to an expected increase in the Packages gross margin-to-revenue ratio, partially offset by an anticipated lower level of Packages activities, combined with a higher level of selling, general and administrative expenses, and a lower Services gross margin-to-revenue ratio. The main segment contributors to the higher operating income for the first nine months of 2009 were Infrastructure & Environment and Power, partially offset by the Chemicals & Petroleum segment, which recorded a loss in that period.

Year-to-date revenues for the nine-month period ended September 30, 2009 were lower, at $4.5 billion, compared to $5.2 billion for the nine-month period ended September 30, 2008, mainly reflecting an expected decrease in Packages activities, partially offset by increased Operations & Maintenance and Services activities.

"We achieved good results in the third quarter, our net income is up and our cash position has increased. Our backlog remains solid and our list of prospects both national and international is promising, which bodes well for 2010," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are pleased with our year-to-date net income growth and we continue to expect growth of 7% to 12% for 2009."

The Company's financial position remained strong with cash and cash equivalents of $1.2 billion, compared to $988.2 million as at December 31, 2008. The variance is mainly due to the proceeds received from the July 3, 2009 issuance of $350 million of 10-year unsecured debentures, and the cash generated from operations, partially offset mainly by cash used for investing activities.

Total backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained solid at $10.2 billion at the end of September 2009, compared to $9.9 billion at the end of June 2009 and $9.6 billion at the end of December 2008. At the end of September 2009, Services and Packages backlog remained solid at $1.6 billion and $3.5 billion respectively, in line with December 2008.

The Board of Directors declared a cash dividend of $0.15 per share, payable December 3, 2009 to shareholders of record on November 19, 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.

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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