Highlights -- For the second quarter of 2012, net income
attributable to SNC-Lavalin shareholders was $32.5 million ($0.21
per share on a diluted basis), compared to $102.2 million ($0.67
per share on a diluted basis) for the comparable quarter of 2011.
-- For the six-month period ended June 30, 2012, net income
attributable to SNC-Lavalin shareholders was $99.6 million ($0.66
per share on a diluted basis), compared to $178.3 million ($1.17
per share on a diluted basis) for the same period of 2011. -- Net
income excluding Infrastructure Concession Investments was $44.0
million for the six-month period ended June 30, 2012, compared to
$112.2 million for the corresponding period in 2011. SNC-Lavalin's
net income from Infrastructure Concession Investments was $55.6
million for the six months ended June 30, 2012, compared to $66.1
million for the same period in 2011. -- Revenues for the six-month
period ended June 30, 2012, increased by 11.5% to $3.7 billion,
compared to $3.3 billion for the same period in 2011. -- Revenue
backlog remained strong, totalling $10.7 billion at the end of June
2012, compared to $10.1 billion at the end of December 2011. --
Financial position remained solid with cash and cash equivalents of
$1.2 billion at June 30, 2012. -- Return on average shareholders'
equity was 14.8% for the 12-month period ended June 30, 2012. --
The Board of Directors declared a cash dividend of $0.22 per share
for the second quarter of 2012. MONTREAL, Aug. 3, 2012 /CNW Telbec/
- SNC-Lavalin Group Inc. Financial Highlights (unaudited) Second
Quarter Six months ended June 30 (in thousands of Canadian dollars,
unless otherwise indicated) 2012 2011(1) 2012 2011(1) Revenues by
activity Services $ 787,011 $ 564,388 $ 1,456,065 $ 1,044,541
Packages 701,158 693,913 1,320,108 1,328,775 Operations and
Maintenance 293,229 281,688 676,590 708,455 Infrastructure
Concession Investments (ICI) 124,887 128,713 241,405 230,484 $
1,906,285 $ 1,668,702 $ 3,694,168 $ 3,312,255 Net income excluding
ICI $ 1,983 $ 60,452 $ 43,995 $ 112,146 SNC-Lavalin's net income
from ICI 30,511 41,745 55,628 66,124 Net income attributable to
SNC-Lavalin shareholders 32,494 102,197 99,623 178,270 Net income
attributable to non-controlling interests 200 2,649 417 5,395 Net
income $ 32,694 $ 104,846 $ 100,040 $ 183,665 Diluted earnings per
share ($) $ 0.21 $ 0.67 $ 0.66 $ 1.17 Shares outstanding (in
thousands) Weighted average number of outstanding shares - Basic
151,039 150,824 151,075 150,888 Weighted average number of
outstanding shares - Diluted 151,198 151,956 151,414 152,148 Return
on average shareholders' equity (ROASE) (2) 14.8% 25.0% As at As at
December June 30 31 Revenue backlog by activity 2012 2011 Services
$ 2,348,100 $ 2,226,100 Packages 5,988,300 5,482,800 Operations and
Maintenance 2,357,300 2,379,100 $ 10,693,700 $ 10,088,000 (1) Refer
to Note 14 to the unaudited interim condensed consolidated
financial statements of the second 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. announced its results today for the second
quarter and six-month period ended June 30, 2012. Second Quarter
Results For the second quarter of 2012, net income attributable to
SNC-Lavalin shareholders was $32.5 million ($0.21 per share on
a diluted basis), compared to $102.2 million ($0.67 per share
on a diluted basis) for the comparable quarter of 2011. The net
income excluding Infrastructure Concession Investments ("ICI") was
$2.0 million, compared to $60.5 million for the second quarter of
2011, mainly reflecting operating losses in the Power and
Infrastructure & Environment segments, as well as a lower
contribution from the Hydrocarbons & Chemicals segment. The net
income from ICI decreased to $30.5 million, compared to
$41.7 million for the second quarter of 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 a lower net income from Shariket Kahraba
Hadjret En Nouss S.p.A. ("SKH"), partially offset by a higher net
income from AltaLink. For the second quarter of 2012, revenues
increased by 14.2% to $1.9 billion, mainly due to an increase of
39.4% in the Services category. Year-to-Date Results For the
six-month period ended June 30, 2012, net income attributable to
SNC-Lavalin shareholders was $99.6 million ($0.66 per share on a
diluted basis), compared to $178.3 million ($1.17 per share on
a diluted basis) for the same period of 2011. The net income
excluding ICI was $44.0 million, compared to $112.2 million for the
first six months of 2011, mainly reflecting lower contributions
from the Power, Hydrocarbons & Chemicals and Operations &
Maintenance segments, as well as an operating loss in the
Infrastructure & Environment segment, partially offset by a
higher contribution from the Mining & Metallurgy segment. For
the same reasons given above, the net income from ICI decreased to
$55.6 million, compared to $66.1 million for the first six
months of 2011. "The second quarter was difficult in terms of
project execution, but we are encouraged by our strong financial
position and backlog," said Ian Bourne, Vice-Chairman and Interim
Chief Executive Officer, SNC-Lavalin Group Inc. The Company's
financial position remained solid with cash and cash equivalents
totalling $1.2 billion as at June 30, 2012. Revenues for the
six-month period ended June 30, 2012, increased by 11.5% to $3.7
billion, compared to $3.3 billion for the same period in 2011,
mainly due to an increase of 39.4% in the Services category.
Revenue backlog remained strong at $10.7 billion at the end of
June 2012, compared to $10.1 billion at the end of December
2011, with increases in the Services and Packages categories of
activity. The Company's return on average shareholders' equity was
14.8% for the 12-month period ended June 30, 2012. Mr. Bourne also
stated, "We are pleased with our progress in implementing the
remedial measures emanating from the internal investigation
conducted in the first quarter of 2012." 2012 Outlook Update The
Company is revising its previously announced 2012 Outlook for which
the expected 2012 net income was to be in line with full year 2011
net income. Principally as a result of the unfavourable cost
reforecasts of approximately $50 million identified as part of
ongoing project reviews and recorded in the second quarter of 2012
on two major fixed-price projects, one in the Power segment and one
in the Hydrocarbons & Chemicals segment, the 2012 net income is
currently 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 August 31, 2012, to shareholders of
record on August 17, 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. 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 proposed 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
second 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. SNC-LAVALIN CONTACT:
Investors:Denis JasminVice-President, Investor
Relations514-390-8000, ext.
7553denis.jasmin@snclavalin.comMedia:Leslie QuintonSenior
Vice-President, Global Corporate Communications514-390-8000, ext.
7354leslie.quinton@snclavalin.com
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