SNC-Lavalin Group Inc. (SNC-Lavalin) has reported revenues of CAD7.1 billion for the year-end 2008, up 5.6%, compared with the revenues in the previous year-end. It has also reported a net income of CAD312.5 million, or CAD2.05 per diluted share, for the year-end 2008, compared with the net income of CAD153.2 million, or CAD1.00 per diluted share, in the previous year-end.
For the fourth quarter 2008, net income increased by 9.0% to CAD75.0 million (CAD0.49 per share on a diluted basis), compared to CAD68.7 million (CAD0.45 per share on a diluted basis) for the comparable quarter in 2007. This increase reflects a higher net income from Infrastructure Concession Investments of CAD7.5 million, mainly due to SNC-Lavalin’s proportionate share of the increase in Highway 407’s net income. Net income excluding Infrastructure Concession Investments was CAD61.4 million compared to CAD62.6 million for the fourth quarter 2007. This variance reflects a loss in the Chemicals & Petroleum segment and a lower contribution from the Operations & Maintenance segment, partially offset by higher contributions from the Mining & Metallurgy, Other Industries and Infrastructure & Environment segments, and by a lower loss from the Power segment.
Net income also includes a net income from discontinued operations of CAD84.1 million representing the net gain after taxes from the sale of SNC Technologies. From continuing operations, net income was CAD312.5 million for the year ended December 31, 2008 compared to a net income of CAD69.1 million for 2007. The increase was mainly due to a higher operating income in the Mining & Metallurgy, Other Industries and Infrastructure & Environment segments, combined with a lower loss in 2008 from the Power segment, partially offset by a lower operating income in the Chemicals & Petroleum segment.
Revenues for the fourth quarter 2008 were in line with the fourth quarter 2007 at CAD1.9 billion. Increase in revenues is mainly due to higher activities in the Mining & Metallurgy, Chemicals & Petroleum, Operations & Maintenance and Other Industries segments, largely offset by lower activities in the Power segment.
The company’s backlog for its four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments remained strong at CAD9.6 billion at the end of the year compared to CAD9.7 billion at the end of September 2008, and CAD10.6 billion at the end of December 2007.
The company’s balance sheet position remained solid with cash and cash equivalents of CAD988.2 million at December 31, 2008.
The company’s return on average shareholders’ equity was 28.9% for the year-end 2008, compared to 16.5% for the previous year-end.
“I am pleased with our results for 2008,” said Jacques Lamarre, president and chief executive officer, SNC-Lavalin Group. “We doubled our net income, achieved a 28.9% return on average shareholders’ equity and maintained a strong backlog and a solid balance sheet.”
“Our capacity to operate in different categories of activity and industry sectors and the fact that we have permanent offices in over 35 countries give us the basis to achieve our expected net income growth of 7% to 12% in 2009, in line with our long-term financial objective,” said Lamarre. “However, we remain cautious given the uncertainties regarding the global economic situation.”