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Business Quarterly Results
SNC-Lavalin announces fourth quarter and year-end results for 2007
Highlights -
Fourth Quarter
- For the fourth quarter of 2007, net income was $68.7 million ($0.45 per
share on a diluted basis) compared to a net income of $50.7 million
($0.33 per share on a diluted basis) for the same period last year, an
increase of 36%.
Year-Ended December 31, 2007
- For the year ended December 31, 2007, net income was $153.2 million
($1.00 per share on a diluted basis) compared to $158.4 million for the
same period in 2006 ($1.04 per share on a diluted basis). This lower
year-to-date net income is mainly due to a pre-tax operating loss of
$267.3 million in the Power segment.
- Year-to-date revenues increased to $6.7 billion from $5.2 billion for
the corresponding period last year.
- Backlog at the end of December 2007 remained strong at $10.6 billion.
- Cash and cash equivalents remained solid at $1.1 billion on December
31, 2007.
Dividend Increase
- The Board of Directors increased the cash dividend by 33% to $0.12 per
share for the fourth quarter of 2007.
MONTREAL - SNC-Lavalin Group Inc. announced results for the
fourth quarter and the year ended December 31, 2007.
For the fourth quarter, net income was $68.7 million ($0.45 per share on
a diluted basis) compared to $50.7 million ($0.33 per share on a diluted
basis) for the comparable quarter in 2006. This 36% increase in net income
reflects higher contributions mainly from the Chemicals & Petroleum,
Infrastructure & Environment, and Mining & Metallurgy segments, partially
offset by a pre-tax operating loss of $52.6 million in the Power segment in
the fourth quarter of 2007.
For the year ended December 31, 2007, net income decreased to
$153.2 million ($1.00 per share on a diluted basis), compared to
$158.4 million ($1.04 per share on a diluted basis) for the same period in
2006. The decrease resulted primarily from a $267.3 million pre-tax operating
loss in the Power segment, which was mainly due to the Goreway project. This
decrease was partially offset by higher contributions from all other segments,
particularly Chemicals & Petroleum and Mining & Metallurgy and a net gain
after taxes of $84.1 million from the disposal of SNC Technologies.
"After several years of steadily increasing net income, we encountered a
setback in 2007 with a loss in the Power segment," said Jacques Lamarre,
President and Chief Executive Officer, SNC-Lavalin Group Inc. "Despite this
setback, our 2007 consolidated net income was close to that achieved in 2006,
and we are pleased with the performance of the other segments."
For the fourth quarter, revenues increased to $2.0 billion, up 20% from
the same period in 2006, mainly due to higher activities in the Chemicals &
Petroleum, Mining & Metallurgy and Operations & Maintenance segments.
Year-to-date revenues increased by 31% to $6.7 billion compared to the same
period in 2006, reflecting increased revenues in all segments.
In 2007, the Company acquired 18 engineering firms with a total of
approximately 3,000 employees working out of offices in Brazil, Canada,
France, India, Spain and the United States. The total cash outflow for these
acquisitions was $161 million, and they brought our total number of employees
worldwide to over 18,000.
The Company's backlog at the end of the year remained strong at
$10.6 billion, in line with the end of December 2006. The December 2007
backlog reflects an increase in the Services and Operations & Maintenance
categories offset by a decrease in the Packages category.
The Company's balance sheet position remained solid with cash and cash
equivalents of $1.1 billion at December 31, 2007.
"We see many opportunities across all our sectors of activity," added
Mr. Lamarre. "Given our strong backlog, the strength and diversity of our
revenue base, and our geographical coverage, we are optimistic about our
prospects for the coming year."
In recognition of this positive outlook, the Board of Directors has
increased the quarterly cash dividend by 33% to $0.12 per share, payable April
3, 2008 to shareholders of record on March 20, 2008. This dividend is an
"eligible dividend" for income tax purposes.
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