SNC-LAVALIN REPORTS GROWTH IN NET INCOME EXCLUDING HIGHWAY 407
SNC-Lavalin Group Inc. (TSX:SNC) announced growth in net income excluding Highway 407 for the third quarter and the nine-month period ended September 30, 2005.
Consolidated net income for the third quarter of 2005 was $27.2 million ($0.53 per share on a diluted basis) compared to $29.2 million ($0.57 per share on a diluted basis) for the corresponding period in 2004. Net income excluding Highway 407 increased by 12.7% to $31.9 million ($0.62 per share on a diluted basis) compared to $28.3 million ($0.55 per share on a diluted basis), mainly due to higher operating income in the Chemicals and Petroleum segment. SNC-Lavalin’s share of the net accounting loss from Highway 407 was $4.7 million in the third quarter of 2005 compared to a net income of $0.9 million for the same period in 2004, as increased revenues were more than offset by higher interest and other expenses.
On a year-to-date basis, consolidated revenues were $2.6 billion in 2005 compared to $2.3 billion in 2004 mainly as a result of increased activities in the Power, Infrastructure and Environment, and Defence segments.
Consolidated net income for the first nine months of 2005 was $86.0 million ($1.68 per diluted share) compared to $73.4 million ($1.43 per diluted share) for the same period in 2004. This is due to a 10.6% increase in net income excluding Highway 407 to $90.0 million ($1.76 per share on a diluted basis) in 2005 from $81.4 million ($1.59 per share on a diluted basis) in 2004 resulting from increased operating income in the Power, Chemicals and Petroleum, and Defence segments, combined with increased interest revenues. These increases were partially offset by lower operating income mainly in the Infrastructure and Environment segment. In addition, SNC-Lavalin’s share of the net accounting loss from Highway 407 was lower, at $4.0 million on a year-to-date basis compared to a loss of $8.0 million for the same period in 2004 resulting mainly from an increase in revenues.
“Our net income excluding Highway 407 is up, our backlog and cash positions have increased, and our list of prospects remains promising,” said Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc. “We were awarded significant projects during the third quarter, and we continue to see many opportunities across all our sectors of expertise.”
Backlog at the end of September 2005 was $7.6 billion, compared to $6.3 billion at year-end 2004, and includes the recently announced Richmond-Airport-Vancouver rapid transit line project.
The balance sheet remains solid with consolidated cash and cash equivalents of $1,025.9 million compared to $713.2 million at year-end December 31, 2004.
SNC-Lavalin also announced that, subject to the approval by the Alberta Energy and Utilities Board, it will increase its participation in AltaLink, a regulated electricity transmission provider in Alberta, from 50% to 76.92%. The purchase price of this transaction will be approximately $51 million, subject to certain adjustments.
The Board of Directors declared a quarterly dividend of $0.16 per share payable December 1st, 2005 to shareholders of record on November 17th, 2005.
N.B.: All amounts expressed in this report are in Canadian dollars.
SNC-Lavalin (TSX:SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership and management of infrastructure and a key player in facilities and operations management. The SNC-Lavalin companies have offices across Canada and in 30 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 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 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 Interim Financial Statements and the accompanying 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.
Media ContactGillian MacCormack
Vice-President, Global Public Relations
SNC-Lavalin Group Inc.
Vice-President, Investor Relations
SNC-Lavalin Group Inc.