SNC-LAVALIN ANNOUNCES ITS RESULTS FOR THE THIRD QUARTER AND NINE-MONTH
PERIODS ENDED SEPTEMBER 30, 2010
Highlights
- For the third quarter 2010, net income increased to $128.2 million
($0.84 per share on a diluted basis), compared to $103.1 million
($0.68 per share on a diluted basis) for the third quarter 2009.
- For the nine-month period ended September 30, 2010, net income
increased by 14.3% to $297.9 million ($1.96 per share on a diluted
basis), compared to $260.7 million ($1.72 per share on a diluted basis)
for the same period in 2009.
- Revenues for the nine-month period ended September 30, 2010 were
$4.4 billion compared to $4.5 billion for the corresponding period in
2009.
- Total revenue backlog for the four categories: Services, Packages,
Operations & Maintenance and Infrastructure Concession Investments
increased to $12.7 billion at the end of September 2010, compared to
$11.4 billion at the end of June 2010 and $10.8 billion at the end of
December 2009.
- Balance sheet position remained solid with cash and cash equivalents of
$1.0 billion at September 30, 2010.
- Return on average shareholders' equity was 26.1% for the 12-month
period ended September 30, 2010.
- The Board of Directors declared a cash dividend of $0.17 per share for
the third quarter 2010.
MONTREAL, Nov. 5, 2010 /CNW Telbec/ -
SNC-Lavalin Group Inc.
Financial Highlights (unaudited)
Nine months
Third Quarter ended September 30
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(in thousands of
Canadian dollars,
unless otherwise
indicated) 2010 2009 2010 2009
--------------------------------------------- ---------------------------
Revenues by
activity
Services $ 491,744 $ 535,647 $ 1,450,556 $ 1,664,254
Packages 666,121 472,523 1,651,316 1,614,846
Operations and
Maintenance 308,187 311,934 947,268 962,603
Infrastructure
Concession
Investments
(ICI) 141,208 102,324 370,402 276,821
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$ 1,607,260 $ 1,422,428 $ 4,419,542 $ 4,518,524
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Net income
excluding ICI $ 110,873 $ 93,693 $ 247,116 $ 246,465
SNC-Lavalin's
net income
from ICI 17,346 9,451 50,739 14,195
------------- ------------- ------------- -------------
Net income $ 128,219 $ 103,144 $ 297,855 $ 260,660
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Diluted earnings
per share ($) $ 0.84 $ 0.68 $ 1.96 $ 1.72
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Shares outstanding
(in thousands)
Weighted average
number of
outstanding
shares - Basic 150,967 151,070 150,963 151,031
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average
number of
outstanding
shares -
Diluted 151,970 152,218 152,119 151,860
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Return on average
shareholders'
equity (ROASE)(1) 26.1% 26.9%
------------- -------------
------------- -------------
As at As at
September 30 December 31
Backlog by activity 2010 2009
------------- -------------
Services $ 1,429,100 $ 1,464,900
Packages 5,764,300 4,197,500
Operations and Maintenance 2,621,300 2,596,100
ICI 2,846,400 2,578,700
------------- -------------
$ 12,661,100 $ 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 third quarter and nine-month periods ended September 30, 2010.
Net income for the third quarter 2010 increased to $128.2 million ($0.84 per share on a diluted basis) compared to $103.1 million ($0.68 per share on a diluted basis) for the third quarter 2009, mainly reflecting higher operating income from the Power segment, which included a gain on disposal of technology solution assets, and higher operating income from the Infrastructure Concession Investments and Infrastructure & Environment segments, partially offset by an operating loss in the Chemicals & Petroleum segment.
For the nine-month period ended September 30, 2010, net income increased by 14.3% to $297.9 million ($1.96 per share on a diluted basis) compared to $260.7 million ($1.72 per share on a diluted basis) for the corresponding period in 2009, mainly due to a higher net income from Infrastructure Concession Investments. The net income from Infrastructure Concession Investments was $50.8 million compared to $14.2 million for the nine-month period ended September 30, 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 started operations in the second half of 2009. Net income excluding Infrastructure Concession Investments was $247.1 million for the first nine months of 2010, in line with the same period in 2009, as higher operating income in the Chemicals & Petroleum and Power segments was offset by lower operating income in the Mining & Metallurgy, Infrastructure & Environment and Other Industries segments.
Revenues for the third quarter of 2010 increased by 13.0% compared to the third quarter of 2009, mainly due to higher Packages revenues. Revenues for the nine-month period ended September 30, 2010 were $4.4 billion compared to $4.5 billion for the corresponding period in 2009, mainly reflecting lower revenues from Services and Operations & Maintenance activities, partially offset by higher revenues from Infrastructure Concession Investments and Packages activities.
"We have good reason to be pleased with our year-to-date results; our net income increased and our cash position remains solid. We have also increased our backlog by nearly $2 billion since the beginning of the year," said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "With these good results, we now expect that our 2010 net income growth will surpass our annual long-term growth objective of 7% to 12%. We are also pleased with our recent project announcements and continue to see many opportunities across all our sectors of expertise."
Total revenue backlog for the four categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments increased to $12.7 billion at the end of September 2010, compared to $11.4 billion at the end of June 2010 and $10.8 billion at the end of December 2009.
The Company's balance sheet position remains solid with cash and cash equivalents of $1.0 billion at September 30, 2010.
The Company's return on average shareholders' equity was 26.1% for the 12-month period ended September 30, 2010.
The Board of Directors declared a cash dividend of $0.17 per share payable December 3, 2010 to shareholders of record on November 19, 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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