SNC-LAVALIN ANNOUNCES ITS FIRST QUARTER RESULTS FOR 2009
N.B.: All amounts indicated are in Canadian dollars.
SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the first quarter ended March 31, 2009.
Net income for the first quarter 2009 increased to $77.5 million ($0.51 per share on a diluted basis) from $70.8 million ($0.47 per share on a diluted basis) for the first quarter 2008. The higher net income was mainly due to higher contributions from the Infrastructure & Environment, Mining & Metallurgy and Infrastructure Concession Investments segments, partially offset by a loss in the Chemicals & Petroleum segment.
Revenues for the first quarter 2009 were lower, at $1.6 billion, compared to $1.8 billion for the same period in 2008. The variation mainly reflects decreased activities in Packages, partially offset by increased revenues in Services and Operations & Maintenance.
“We are pleased with our solid results for the first quarter 2009 and remain positive for the year ahead,” said Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc. “It is with great pride and confidence in SNC-Lavalin’s future that I pass the baton today to my successor, Pierre Duhaime. I know that he will lead SNC-Lavalin to new and exciting heights.”
The Company’s financial position remained strong with cash and cash equivalents of $872.3 million at March 31, 2009.
The Company’s return on average shareholders’ equity was 28.2% for the 12-month period ended March 31, 2009, compared to 25.8% for the same period last year.
The Company’s total backlog for the four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, totalled $9.0 billion at the end of March 2009, compared to $9.6 billion at the end of December 2008, and $10.0 billion at the end of March 2008. At the end of March 2009, Packages backlog decreased to $3.2 billion compared to $3.5 billion at the end of December 2008, and $3.9 billion at the end of March 2008, while Services backlog remained solid at $1.5 billion, in line with December and March 2008.
“It is an honour and a privilege for me to be taking over the leadership of SNC-Lavalin, and I look forward to this new challenge,” said Pierre Duhaime, incoming President and Chief Executive Officer, SNC-Lavalin Group Inc. “The year is off to a good start. Given these results, our backlog and our list of prospects, we continue to strive for a net income growth of 7% to 12% in 2009, but remain cautious as the global economic situation is difficult to predict.”
The Board of Directors today declared a cash dividend of $0.15 per share payable June 4, 2009 to shareholders of record on May 21, 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
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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 Budget and Forecast Our Results and Basis for Providing Financial Guidance”, respectively, in the Company’s Annual Report under “Management’s Discussion and Analysis”, and under the section “Caution regarding forward-looking statements” of the Company’s most recent Annual Information Form filed with the securities regulatory authorities in Canada, available at SEDAR (www.sedar.com). 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.
Media ContactGillian MacCormack
Vice-President, Global Public Relations
SNC-Lavalin Group Inc.
Vice-President, Investor Relations
SNC-Lavalin Group Inc.