October 29, 2008

SNC-Lavalin Group Inc. announces third-quarter 2008 results

On October 31, 2008, SNC-Lavalin Group Inc. (TSX:SNC) announced its results for the third quarter and nine-month periods ended September 30, 2008.

For the third quarter of 2008, net income was $91.3 million ($0.60 per share on a diluted basis) compared to a net income of $63.2 million ($0.41 per share on a diluted basis) for the third quarter of 2007. The increase is mainly due to higher operating income in the Mining & Metallurgy and Infrastructure & Environment segments.

For the first nine months of 2008, net income was $237.6 million ($1.56 per share on a diluted basis) compared to $84.5 million ($0.55 per share on a diluted basis) for the corresponding period in 2007, which included a net income from discontinued operations of $84.1 million representing the net gain after taxes on the sale of SNC Technologies.

From continuing operations, net income was $237.6 million for the first nine months of 2008 compared to a net income of $0.4 million for the same period in 2007.

The difference is mainly explained by the operating loss in the Power segment in the first nine months of 2007, coupled with a higher operating income in the Chemicals & Petroleum, Mining & Metallurgy, All Other and Infrastructure & Environment segments for the nine-month period ended September 30, 2008, compared to the corresponding period in 2007.

“We achieved solid results in the third quarter of 2008 and I am pleased with our performance in the first nine months of 2008,” said Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group Inc.

“We are on the right track for substantial growth in profitability in 2008 compared to 2007.”

Revenues for the nine-month period ended September 30, 2008 increased by 8.9% to $5.2 billion compared to $4.7 billion for the same period in 2007. This increase was mainly due to increased activities in the Services and Operations & Maintenance revenue categories.

The company’s backlog for its four revenue categories: Services, Packages, Operations & Maintenance and Infrastructure Concession Investments, remained strong at $9.7 billion at the end of September 2008 compared to $9.4 billion at the end of June 2008, and $9.8 billion at the end of September 2007.

"“he current global financial crisis brings uncertainties to our business,” said Mr. Lamarre.

“Given the many different sectors and countries we are working in, our flexibility, our backlog and our prospect list, we remain positive about upcoming quarters.”

The company’s financial position remained solid with cash and cash equivalents of $798 million at September 30, 2008.

The company’s return on average shareholders’ equity was 29.7% for the 12-month period ended September 30, 2008, compared to 14.9% for the same period last year.

The Board of Directors declared a cash dividend of $0.12 per share payable November 27, 2008 to shareholders of record on November 13, 2008. This dividend is an ‘eligible dividend’ for income tax purposes.

SNC-Lavalin (TSX:SNC) 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.

The SNC-Lavalin companies have offices across Canada and in over 35 other countries around the world and are currently working in some 100 countries.

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