SNC-Lavalin provides update on announcement of 2011 financial results and impact on 2011 outlook
February 27 2012 - 10:32AM
PR Newswire (Canada)
N.B.: All amounts indicated are in Canadian dollars. MONTREAL, Feb.
28, 2012 /CNW Telbec/ - SNC-Lavalin Group Inc. announced today that
its 2011 net income is expected to be approximately 18% (or
approximately $80 million) below its previously announced 2011
outlook. Of this amount, the following items are expected to be
recorded in the fourth quarter of 2011: -- A loss of approximately
$23 million from a revised position of the Company's net financial
exposure on its Libyan projects; -- Unfavourable cost reforecasts
on certain projects in its Infrastructure and Environment and
Chemicals and Petroleum segments; and -- Period expenses of
approximately $35 million relating to certain payments made in the
fourth quarter of 2011 that were documented to construction
projects to which they did not relate and, consequently, had to be
recorded as expenses in the quarter. The Company's Board of
Directors initiated an independent investigation, led by its Audit
Committee, of the facts and circumstances surrounding the $35
million of payments referred to above and certain other contracts.
Independent legal counsel were retained in this connection. The
investigation's current findings support the Company's accounting
treatment of these payments. The Board of Directors is taking steps
to implement changes and further appropriate actions arising from
the investigation. The Company is working with its external
auditors and legal advisors to resolve all issues relating to the
investigation to permit the auditors to deliver their audit report
on a timely basis. The Company is working towards announcing and
filing its 2011 fourth quarter and year-end financial results as
soon as reasonably possible and in any event prior to March 30,
2012. 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. 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 FORWARD LOOKING
STATEMENT 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 Analyze and Report our Results", respectively, in
the Company's 2010 Financial Report under "Management's Discussion
and Analysis". These risks and uncertainties also include the
ability to conclude the independent investigation in a timely
manner, the results of the investigation and any further matters
identified by the investigation that need to be reflected in
the financial results of the Company. 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 CONTACT:
Investors:Denis JasminVice-President, Investor Relations
514-390-8000, ext. 7553denis.jasmin@snclavalin.comMedia: Leslie
QuintonVice-President, Global CorporateCommunications514-390-8000,
ext. 7354leslie.quinton@snclavalin.com
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