SNC-Lavalin reports net income of $41 million for the second quarter of 2007



    
    Highlights

    - Net income for the second quarter of 2007 is $41.1 million
      ($0.27 per share on a diluted basis) compared to net income of
      $38.4 million ($0.25 per share on a diluted basis) for the same period
      last year.

    - For the six-month period ended June 30, net income is $21.3 million in
      2007 compared to $64.9 million for the same period in 2006. These lower
      results are mainly due to the operating loss from the Power segment.

    - Year-to-date revenues increased to $3.0 billion from $2.2 billion for
      the corresponding period last year.

    - Backlog remains strong at $10.5 billion.

    - Cash and cash equivalents were $1.3 billion at the end of June 2007.

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

    MONTREAL, August 3 /CNW Telbec/ -

    
    SNC-Lavalin Group Inc.
    Financial Highlights (unaudited)


    (in thousands of                                           Six months
     Canadian dollars,          Second Quarter               ended June 30
     unless otherwise        --------------------        --------------------
     indicated)               2007          2006          2007          2006

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Revenues
      Services        $    426,932  $    289,338  $    780,576  $    521,925
      Packages             981,913       629,851     1,507,200     1,142,708
      Operations and
       Maintenance         200,255       165,206       516,871       473,960
      Infrastructure
       Concession
       Investments          77,556        39,024       150,195        62,633
                      ------------  ------------  ------------  -------------
                      $  1,686,656  $  1,123,419  $  2,954,842  $  2,201,226
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------

    Net income (loss)
     from continuing
     operations       $     41,144  $     31,873  $    (62,794) $     52,886
    Net income from
     discontinued
     operations                  -         6,538        84,086        12,062
                      ------------  ------------  ------------  -------------
    Net income              41,144        38,411        21,292        64,948
    Net income (loss)
     from Highway 407        1,879         1,817           410           (29)
                      ------------  ------------  ------------  -------------
    Net income,
      excluding
      Highway 407     $     39,265  $     36,594  $     20,882  $     64,977
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------

    Diluted earnings
     (loss) per share
     from continuing
     operations
     ($)(1)           $       0.27  $       0.21  $      (0.42) $       0.35
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------
    Diluted earnings
     per share
     ($)(1)           $       0.27  $       0.25  $       0.14  $       0.42
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------

    Shares outstanding
     (in thousands)
      Weighted average
       number of
       outstanding
       shares - Basic      151,222       151,063       151,107       151,108
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------
      Weighted average
       number of
       outstanding
       shares -
       Diluted             152,690       152,914       152,609       152,968
                      ------------  ------------  ------------  -------------
                      ------------  ------------  ------------  -------------

    Return on average
     shareholders'
     equity (ROASE),
     excluding
     Highway 407                                          12.0%         18.0%
                                                  ------------  -------------
                                                  ------------  -------------

    Backlog at June 30
      Services                                    $  1,155,600  $    715,900
      Packages                                       5,094,500     5,622,500
      Operations and
       Maintenance                                   2,157,800     1,798,200
      Infrastructure
       Concession
       Investments                                   2,122,300     1,863,700
                                                  ------------  -------------
                                                  $ 10,530,200  $ 10,000,300
                                                  ------------  -------------
                                                  ------------  -------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The dilutive effect of stock options for the six-month period ended
        June 30, 2007, was anti-dilutive due to the loss from continuing
        operations and, in accordance with GAAP, was excluded from the
        calculations of the diluted earnings (loss) per share for that
        six-month period.
    (2) SNC-Lavalin's proportionate share of 407 International Inc. results
        is referred to as "Highway 407".
    (3) Certain 2006 figures have been reclassified to conform with the
        presentation adopted in 2007.


            SNC-Lavalin reports net income of $41 million for the
                           second quarter of 2007


    N.B.: All amounts indicated in this report are in Canadian dollars.

    SNC-Lavalin Group Inc. (TSX: SNC) announced its results today for the
second quarter and six-month period ended June 30, 2007.
    Second quarter results reflect an increase of 7% in net income to reach
$41.1 million ($0.27 per share on a diluted basis) in the second quarter of
2007 compared to a net income of $38.4 million ($0.25 per share on a diluted
basis) for the comparable quarter in 2006. The increase is mainly due to
higher operating income in the Chemicals & Petroleum and Mining & Metallurgy
segments, partially offset by an additional loss in the Power segment, mainly
due to the Company's revision of the estimated costs for the completion of the
Goreway 880MW combined cycle thermal power plant.
    On a year-to-date basis, net income was at $21.3 million ($0.14 per share
on a diluted basis), compared to $64.9 million ($0.42 per share on a diluted
basis) for the same period in 2006. The decrease is mainly due to the
operating loss from the Power segment, originating from the Goreway project,
as well as from a lower contribution from the Infrastructure & Environment
segment. This decrease was partly offset by a gain of $84.1 million from the
disposal of SNC Technologies, and from contributions from other operating
activities such as Chemicals & Petroleum and Mining & Metallurgy.
    "Our net income increased by 7% even if we had to recognize an additional
loss in the Power segment," said Jacques Lamarre, President and Chief
Executive Officer, SNC-Lavalin Group Inc. "We also achieved 41% growth in our
Services' revenue backlog, compared to year-end."
    Year-to-date revenues increased to $3.0 billion in the first six months of
2007 compared to $2.2 billion in the same period of 2006, due to increased
activities in all operating segments.
    Backlog remains strong at $10.5 billion compared to $10.4 billion at the
end of last year.
    The Company's financial position remains solid with cash and cash
equivalents of $1.3 billion at the end of the second quarter.
    The Board of Directors today declared a cash dividend of $0.09 per share
payable August 31, 2007 to shareholders of record on August 17, 2007. This
dividend is an "eligible dividend" for income tax purposes.

    SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and
construction companies in the world, a major player in the ownership of
infrastructure, and in the provision of operations and maintenance services.
SNC-Lavalin companies have offices across Canada and in 34 other countries
worldwide, working on projects 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 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


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