Canada Dividend Investor: SNC - SNC-Lavalin announces its results for the third quarter and nine-month period ended September 30, 2012 (CAD 0.22)

Company: Snc-Lavalin Sv
Stock Name: SNC
Amount: CAD 0.22
Announcement Date: 02/11/2012
Record Date: 14/11/2012

Dividend Detail:

Highlights

For the third quarter of 2012, net income attributable to SNC-Lavalin
shareholders was $114.9��million ($0.76 per share on a diluted basis),
compared to $124.5 million ($0.82 per share on a diluted basis) for the
comparable quarter of 2011.

For the nine-month period ended September 30, 2012, net income
attributable to SNC-Lavalin shareholders��was $214.5 million ($1.42 per
share on a diluted basis), compared to $302.8��million ($1.99 per share
on a diluted basis) for the same period of 2011.

Net income excluding Infrastructure Concession Investments was $84.0
million for the third quarter of 2012, compared to $98.9��million for
the corresponding period of 2011. SNC-Lavalin's net income from
Infrastructure Concession Investments was $30.9 million for the third
quarter ended September 30, 2012, compared to $25.6��million for the
same quarter of 2011.

Revenues for the nine-month period ended September 30, 2012, increased
by 11.3% to $5.7��billion, compared to $5.1��billion for the same period
of 2011.

Revenue backlog remained strong, totalling $9.9��billion at the end of
September 2012, compared to $10.1��billion at the end of December 2011.

Financial position remained solid with cash and cash equivalents of
$1.1��billion at September 30, 2012.

Return on average shareholders' equity was 14.2% for the 12-month period
ended September 30, 2012.

The Board of Directors declared a cash dividend of $0.22 per share for
the third quarter of 2012.

MONTREAL, Nov. 2, 2012 /CNW Telbec/ -

SNC-Lavalin Group Inc.

Financial Highlights (unaudited)

��

Third Quarter

��

Nine months ended September 30

(in thousands of Canadian dollars, unless otherwise indicated)

2012

��

2011⁽¹⁾

��

2012

��

2011⁽¹⁾

��

Revenues by activity

��

Services

797,695

��

597,992

��

2,253,760

��

1,642,533

��

Packages

��

745,549

��

758,211

��

2,065,657

��

2,086,986

��

Operations and Maintenance

��

304,488

��

308,284

��

981,078

��

1,016,739

��

Infrastructure Concession Investments (ICI)

��

127,517

��

115,031

��

368,922

��

345,515

��

1,975,249

��

1,779,518

��

5,669,417

��

5,091,773

��

Net income excluding ICI

83,945

��

98,944

��

127,940

��

211,090

SNC-Lavalin's net income from ICI

��

30,908

��

25,597

��

86,536

��

91,721

Net income attributable to SNC-Lavalin shareholders

��

114,853

��

124,541

��

214,476

��

302,811

Net income (loss) attributable to non-controlling interests

��

(130)

��

3,010

��

287

��

8,405

Net income

114,723

��

127,551

��

214,763

��

311,216

��

Diluted earnings per share ($)��

0.76

��

0.82

��

1.42

��

1.99

��

Shares outstanding (in thousands)

��

Weighted average number of outstanding shares - Basic

��

151,035

��

150,889

��

151,061

��

150,888

��

Weighted average number of outstanding shares - Diluted

��

151,175

��

151,800

��

151,331

��

152,027

��

Return on average shareholders' equity (ROASE) ⁽²⁾

��

14.2%

��

24.1%

��

Revenue backlog by activity��

��

As at

September 30

2012

��

As at

December 31

2011

��

Services

��

2,125,700

��

2,226,100

��

Packages

��

5,453,600

��

5,482,800

��

Operations and Maintenance

��

2,346,300

��

2,379,100

��

9,925,600

��

10,088,000

��

⁽¹⁾	Refer to Note 14 to the unaudited interim condensed consolidated financial statements of the third quarter of 2012 for��explanations relating to comparative figures.
⁽²⁾	Corresponds to the trailing 12-month net income attributable to SNC-Lavalin shareholders, divided by a trailing��13-month average equity attributable to SNC-Lavalin shareholders, excluding "other components of equity".

N.B.: All amounts indicated are in Canadian dollars.

SNC-Lavalin Group Inc. (TSX: SNC) announced its results today for the
third quarter and nine-month period ended September 30, 2012.

Third Quarter Results

For the third quarter of 2012, net income attributable to SNC-Lavalin
shareholders was $114.9��million ($0.76 per share on a diluted basis),
compared to $124.5��million ($0.82 per share on a diluted basis) for the
comparable quarter of 2011. The net income excluding Infrastructure
Concession Investments ("ICI") was $84.0 million, compared to $98.9
million for the third quarter of 2011, mainly reflecting a lower
contribution from the Infrastructure & Environment segment, partially
offset by higher contributions from the Operations & Maintenance and
Mining & Metallurgy segments. The net income from ICI increased to
$30.9��million, compared to $25.6��million for the third quarter of 2011,
mainly due to higher net income from AltaLink, partially offset by
lower net income from Shariket Kahraba Hadjret En Nouss S.p.A. ("SKH").

For the third quarter of 2012, revenues increased by 11.0% to $2.0
billion, mainly due to an increase of 33.4% in the Services category.

Year-to-Date Results

For the nine-month period ended September 30, 2012, net income
attributable to SNC-Lavalin shareholders was $214.5 million ($1.42 per
share on a diluted basis), compared to $302.8��million ($1.99 per share
on a diluted basis) for the same period of 2011. The net income
excluding ICI was $128.0 million, compared to $211.1 million for the
first nine months of 2011, mainly reflecting lower contributions from
the Infrastructure & Environment, Power and Hydrocarbons & Chemicals
segments, partially offset by a higher contribution from the Mining &
Metallurgy segment. The net income from ICI decreased to $86.5 million,
compared to $91.7��million for the nine-month period ended September 30,
2011, mainly due to lower dividends from Highway 407, as a special
dividend of $18.5 million was declared and paid to the Company in the
second quarter of 2011, as well as lower net income from SKH, partially
offset by higher net income from AltaLink.

The Company's financial position remained solid with cash and cash
equivalents totalling $1.1��billion as at September 30, 2012.

Revenues for the nine-month period ended September 30, 2012, increased
by 11.3% to $5.7��billion, compared to $5.1��billion for the same period
of 2011, mainly due to an increase of 37.2% in the Services category.

Revenue backlog remained strong at $9.9��billion at the end of September
2012, compared to $10.1��billion at the end of December 2011.

The Company's return on average shareholders' equity was 14.2% for the
12-month period ended September 30, 2012.

"Since I arrived, I have been very impressed by the great capacity of
SNC-Lavalin's employees and their dedication to our clients," said Bob
Card, President and Chief Executive Officer, SNC-Lavalin Group Inc.
"Over the coming months I will continue to review our strategy with the
goal of ensuring this Company continues to grow and be successful by
serving the needs of its clients, employees, and shareholders."

2012 Outlook

The Company is maintaining its previously announced 2012 Outlook for
which the 2012 net income is expected to be in a range of $325 million
to $340 million. This Outlook continues to be based on (i) the
expectation that the Power and Mining & Metallurgy segments, mainly
based on their current backlog,��and the Infrastructure��Concession
Investments segment will be the main contributors to net income, while
the Hydrocarbons &��Chemicals and Infrastructure & Environment segments
will continue to be challenging throughout 2012, and (ii) the
methodology described in the Company's 2011 Management's Discussion and
Analysis under the heading "How We Budget and Forecast Our Results",
and which remains subject to the risks and uncertainties described in
the Company's public disclosure documents.

Quarterly Dividends

The Board of Directors today declared a cash dividend of $0.22 per
share, payable on November 30, 2012, to shareholders of record on
November 16, 2012. This dividend is an "eligible dividend" for income
tax purposes.

SNC-Lavalin 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. Founded in 1911,
SNC-Lavalin has offices across Canada and in over 40 other countries
around the world, and is currently working in some 100 countries.�� www.snclavalin.com

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 2012 outlook referred to in this press release is forward-looking
information and is based on the methodology described in the Company's
2011 Management's Discussion and Analysis under the heading "How We
Budget and Forecast Our Results" and is subject to the risks and
uncertainties described in the Company's public disclosure documents,
including risks resulting from the Independent Review and the Company's
continuing review of compliance matters. The purpose of the 2012
outlook is to provide the reader with an indication of management's
expectations, at the date of this press release, regarding the
Company's future financial performance and readers are cautioned that
this information may not be appropriate for other purposes.

The Company cautions that its actual actions and/or results could differ
materially from those expressed or implied in forward-looking
statements, or could affect the extent to which a particular projection
materializes, as a result of risks and uncertainties relating to: (a)
cost overruns from fixed-price contracts; (b) failure to meet scheduled
dates or performance standards on a particular project; (c) attracting
and retaining qualified personnel and any strike, partial work stoppage
or other labour actions by the Company's or its subcontractors'
unionized employees; (d) failure of the Company's joint venture
partners to perform their obligations; (e) failure by the Company's
subcontractors to deliver their portion of a particular project
according to contractual terms; (f) the financial performance of the
Company's infrastructure concession investments during a particular
concession period; (g) the Company obtaining new contract awards; (h)
revenue backlog and whether such revenue backlog will ultimately result
in earnings and when revenues and earnings from such backlog will be
recognized; (i) foreign currency exchange and interest rates; (j)
credit risk and the delay in collection from the Company's clients; (k)
information management including its integrity, reliability and
security; (l) the inherent limitations of the Company's control
framework and the effectiveness of the measures implemented by the
Company to strengthen its internal controls over financial reporting
following the identification by the Company of material weaknesses
relating to the design and operational effectiveness of its internal
controls over financial reporting; (m) uncertain economic and political
conditions in the countries in which the Company does business; (n) any
lack of strong safety practices by the Company or its subcontractors
exposing the Company to lost time on projects, penalties, lawsuits and
impact on future contract awards; (o) the Company's inability to comply
with environmental laws and regulations; (p) the Company's reputation
as a result of, among others, any quality or performance issues on its
projects, a poor health and safety record, non-compliance with laws or
regulations by the Company's employees, agents, subcontractors,
suppliers and/or partners, or creation of pollution and contamination;
(q) the inability to adequately integrate an acquired business in a
timely manner; (r) non-compliance with laws and regulations by an
employee, agent, supplier, subcontractor and/or partner of the Company
or any further regulatory developments; (s) failure by the Company's
employees, agents, suppliers, subcontractors and/or partners to comply
with anti-bribery laws; (t) any litigation and/or legal matters to
which the Company is a party; (u) any negative publicity associated
with the Independent Review led by the Company's Audit Committee of the
facts and circumstances surrounding certain payments that were
documented to construction projects to which they did not relate, and
certain other contracts, as well as any sanctions that could be brought
against the Company in connection with possible violations of law or
contracts should additional facts adverse to the Company become known
in connection with such Independent Review including as to matters
beyond its scope; (v) the class action lawsuits against the Company
with the Ontario Superior Court and the Quebec Superior Court; and (w)
the investigations of the Royal Canadian Mounted Police and the World
Bank principally relating to an unsuccessful bid by a subsidiary to act
for the Bangladeshi government in supervising a project contractor.

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 Analyze and Report our Results", respectively, in
the Company's 2011 Financial Report under "Management's Discussion and
Analysis" and the section "Risks and Uncertainties" in the Company's
third quarter 2012 Management's Discussion and Analysis. The
forward-looking statements herein reflect the Company's expectations as
at the date of this press release and are subject to change after this
date. The Company does not undertake any obligation to update publicly
or to revise any such forward-looking statements, unless required by
applicable legislation or regulation.

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.

��

SOURCE: SNC-LAVALIN

For further information:

Investors:
Denis Jasmin
Vice-President, Investor Relations
514-390-8000, ext. 7553
denis.jasmin@snclavalin.com

Media:
Leslie Quinton
Senior Vice-President, Global Corporate Communications
514-390-8000, ext. 7354
leslie.quinton@snclavalin.com

Canada Dividend Investor

Friday, November 2, 2012

SNC - SNC-Lavalin announces its results for the third quarter and nine-month period ended September 30, 2012 (CAD 0.22)

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