Highlights - For the third quarter of 2008, net income was $91.3 million ($0.60 per share on a diluted basis) compared to a net income of $63.2 million ($0.41 per share on a diluted basis) for the third quarter of 2007. - For the first nine months of 2008, net income was $237.6 million ($1.56 per share on a diluted basis) compared to $84.5 million ($0.55 per share on a diluted basis) for the corresponding period in 2007, which included a pre-tax operating loss of $214.7 million from the Power segment and a net income from discontinued operations of $84.1 million representing the net gain after taxes on the sale of SNC Technologies. - Year-to-date revenues increased to $5.2 billion compared to $4.7 billion for the nine-month period ended September 30, 2007. - Backlog for its four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained strong at $9.7 billion at the end of September 2008. - The Company's financial position remained solid with cash and cash equivalents of $798 million at September 30, 2008. - Return on average shareholders' equity was 29.7% for the 12-month period ended September 30, 2008. - The Board of Directors declared a cash dividend of $0.12 per share for the third quarter of 2008.
MONTREAL, Oct. 31, 2008 /CNW Telbec/ -
SNC-Lavalin Group Inc.
Financial Highlights (unaudited)
Nine months ended
Third Quarter September 30
-------------------------- --------------------------
(in thousands of
Canadian dollars,
unless otherwise
indicated) 2008 2007 2008 2007
--------------------------------------------- --------------------------
Revenues
Services $ 548,714 $ 430,398 $ 1,593,431 $ 1,210,974
Packages 791,381 1,049,415 2,450,971 2,556,615
Operations and
Maintenance 249,623 220,570 855,411 737,441
Infrastructure
Concession
Investments
(ICI) 95,657 84,875 263,141 235,070
------------ ------------ ------------ ------------
$ 1,685,375 $ 1,785,258 $ 5,162,954 $ 4,740,100
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net income from
continuing
operations $ 91,302 $ 63,170 $ 237,565 $ 376
Net income from
discontinued
operations - - - 84,086
------------ ------------ ------------ ------------
Net income 91,302 63,170 237,565 84,462
SNC-Lavalin's net
income from ICI:
From Highway
407 (1) 10,125 5,769 6,653 6,179
From other ICI 9,129 6,714 16,912 12,831
------------ ------------ ------------ ------------
Net income
excluding ICI $ 72,048 $ 50,687 $ 214,000 $ 65,452
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Diluted earnings
per share from
continuing
operations ($) $ 0.60 $ 0.41 $ 1.56 $ 0.00
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Diluted earnings
per share ($) $ 0.60 $ 0.41 $ 1.56 $ 0.55
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Shares outstanding
(in thousands)
Weighted average
number of
outstanding
shares - Basic 150,816 151,387 150,933 151,201
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average
number of
outstanding
shares - Diluted 152,226 152,693 152,518 152,649
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Return on average
shareholders'
equity (ROASE)(2) 29,7% 14,9%
------------ ------------
------------ ------------
Backlog at
September 30
Services $ 1,630,000 $ 1,244,900
Packages 3,813,000 4,326,200
Operations and
Maintenance 2,027,200 2,071,000
Infrastructure
Concession
Investments (ICI) 2,265,800 2,162,700
------------ ------------
$ 9,736,000 $ 9,804,800
------------ ------------
------------ ------------
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(1) SNC-Lavalin's proportionate share of 407 International Inc. results
is referred to as "Highway 407".
(2) Corresponds to the trailing 12-month after-tax earnings, divided by a
trailing 13-month average shareholders' equity, excluding
"accumulated other comprehensive income (loss)".
Certain 2007 figures have been reclassified to conform with the
presentation adopted in 2008.
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 periods ended September 30, 2008.
For the third quarter of 2008, net income was $91.3 million ($0.60 per share on a diluted basis) compared to a net income of $63.2 million ($0.41 per share on a diluted basis) for the third quarter of 2007. The increase is mainly due to higher operating income in the Mining & Metallurgy and Infrastructure & Environment segments.
For the first nine months of 2008, net income was $237.6 million ($1.56 per share on a diluted basis) compared to $84.5 million ($0.55 per share on a diluted basis) for the corresponding period in 2007, which included a net income from discontinued operations of $84.1 million representing the net gain after taxes on the sale of SNC Technologies. From continuing operations, net income was $237.6 million for the first nine months of 2008 compared to a net income of $0.4 million for the same period in 2007. The difference is mainly explained by the operating loss in the Power segment in the first nine months of 2007, coupled with a higher operating income in the Chemicals & Petroleum, Mining & Metallurgy, All Other and Infrastructure & Environment segments for the nine-month period ended September 30, 2008 compared to the corresponding period in 2007.
"We achieved solid results in the third quarter of 2008 and I am pleased with our performance in the first nine months of 2008," said Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc. "We are on the right track for substantial growth in profitability in 2008 compared to 2007."
Revenues for the nine-month period ended September 30, 2008 increased by 8.9% to $5.2 billion compared to $4.7 billion for the same period in 2007. This increase was mainly due to increased activities in the Services and Operations & Maintenance revenue categories.
The Company's backlog for its four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained strong at $9.7 billion at the end of September 2008 compared to $9.4 billion at the end of June 2008, and $9.8 billion at the end of September 2007.
"The current global financial crisis brings uncertainties to our business," said Mr. Lamarre. "Given the many different sectors and countries we are working in, our flexibility, our backlog and our prospect list, we remain positive about upcoming quarters."
The Company's financial position remained solid with cash and cash equivalents of $798 million at September 30, 2008.
The Company's return on average shareholders' equity was 29.7% for the 12-month period ended September 30, 2008, compared to 14.9% for the same period last year.
The Board of Directors declared a cash dividend of $0.12 per share payable November 27, 2008 to shareholders of record on November 13, 2008. 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 over 35 other countries around the world and are 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 objectives, projections, estimates, expectations or
predictions of the future may be "forward-looking statements", which can
be identified by the use of the conditional or forward-looking
terminology such as "believes", "expects", "may", "will", "should",
"estimates", "anticipates", "projects", "plans", 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 that would cause the Company's
actual results to differ from current expectations, please refer to the
section "Risks and Uncertainties" in the Company's 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. The Company does not undertake to update any forward-looking
statements, whether oral or written, made by itself or on its behalf,
except to the extent required by securities legislation.
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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.
