News
Mar 07, 2011CanGEA Member SNC Lavalin Announces Year-end Results for 2010
Montreal | March 4, 2011, SNC-Lavalin Group Inc. (TSX:SNC) announced its results today for the fourth quarter and the year ended December 31, 2010.
N.B.: All amounts indicated are in Canadian dollars.
For the fourth quarter 2010, net income increased to $139.2 million ($0.91 per share on a diluted basis), compared to $98.7 million ($0.65 per share on a diluted basis) for the comparable quarter in 2009. This increase mainly reflects higher contributions from the Infrastructure & Environment, Mining & Metallurgy and Other Industries segments, partially offset by a lower contribution from the Chemicals & Petroleum segment. The increase also reflects a net income increase in Infrastructure Concession Investments, which included a net gain after taxes of $26.1 million from the disposal of Valener Inc. shares and Trencap Limited Partnership units in the fourth quarter 2010.
For the year ended December 31, 2010, net income increased by 21.6% to $437.0 million ($2.87 per share on a diluted basis), compared to $359.4 million ($2.36 per share on a diluted basis) for the same period in 2009. This reflects an 8.9% net income increase when we exclude the above-mentioned net gain from the disposal of two Infrastructure Concession Investments and the after tax gain of $19.6 million from the disposal of certain technology solution assets in August 2010. This 8.9% increase was mainly due to higher contributions from the Infrastructure & Environment and Infrastructure Concession Investments segments.
Revenues for the fourth quarter of 2010 increased by 19.7% to $1.9 billion compared to $1.6 billion in the fourth quarter of 2009, due to a higher volume of activities in all revenue categories, but particularly in Packages which increased by 29.0%. Revenues for the year were $6.3 billion compared to $6.1 billion for the corresponding period in 2009, mainly reflecting higher revenues from Packages and Infrastructure Concession Investments, partially offset by lower revenues from Services.
Total revenue backlog for the four categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained strong at $13.0 billion at the end of December 2010, compared to $12.7 billion at the end of September 2010 and $10.8 billion at the end of December 2009.
The above-mentioned backlog of $13.0 billion does not include any fourth quarter 2010 bookings of Libyan projects, such as the $450 million Al Kufra Wellfield contract, or the Company’s backlog of previously booked Libyan projects which amounted to $484 million at year-end. The Company decided to remove these projects as a precautionary measure that will remain in place until the situation is further clarified.
“I am pleased with what was accomplished in 2010. We signed many new contracts, were awarded two new concessions in Canada and invested in one concession in India, disposed of two non-core Infrastructure Concession Investments and added about 1,200 new employees from business acquisitions, mainly in Colombia. We also increased our net income by 21.6%, continued to build up a strong revenue backlog, and maintained a solid cash position,” said Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. “Even given recent events, we expect our 2011 net income to be in line with 2010, when we exclude the gains recorded in 2010 from the disposal of the two Infrastructure Concession Investments and from the disposal of certain technology solution assets.”
The Company’s balance sheet position remained strong with cash and cash equivalents totalling $1.3 billion as at December 31, 2010.
The Company’s return on average shareholders’ equity was 27.4% for the 12-month period ended December 31, 2010, in line with last year.
Considering the Company’s results and outlook, the Board of Directors has increased the quarterly cash dividend by 23.5% to $0.21 per share, payable on April 1, 2011 to shareholders of record on March 18, 2011. This represents the tenth consecutive year that the Company’s dividend paid per share has been increased. 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. In business since 1911, the Company celebrates its 100th anniversary in 2011.
Media Contact
Leslie Quinton
Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
SNC-Lavalin Inc.
514-393-8000 x7354
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Investors
Denis Jasmin
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
SNC-Lavalin Inc.
514-393-8000 x7553
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