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

SNC-Lavalin announces its results for the third quarter and nine-month period 
ended September 30, 2012 
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)
                                                   Nine months ended
                          Third Quarter               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%
                                                                       
                                                As at


                                          September       As at
Revenue backlog                                  30        December 31
by activity                                     2012           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 $114.9million ($0.76 per share on a diluted basis), 
compared to $124.5million ($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 $30.9million, compared to $25.6million 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 $302.8million ($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 $91.7million 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 $1.1billion as at September 30, 2012.

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

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





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

SOURCE: SNC-LAVALIN

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CO: SNC-LAVALIN
ST: Quebec
NI: CST ERN DIV 

-0- Nov/02/2012 12:45 GMT