SNC-Lavalin increases net income last year

SNC-Lavalin Group has announced positive results for the year ended December 31, 2010. Net income increased by 21.6% to $437.0 million, compared to $359.4 million for the same period in 2009. The company said the figures actually reflect an 8.9% net income increase when it excludes a net gain after taxes of $26.1 million from the disposal of two infrastructure concession investments and a gain after taxes of $19.6 million from the disposal of some technology assets. The 8.9% net income increase over the year was mainly thanks to its Infrastructure & Environment, and Infrastructure Concession Investments segments.

Revenues for the year were $6.3 billion compared to $6.1 billion in 2009. For the fourth quarter of 2010 revenues increased by 19.7% to $1.9 billion, compared to $1.6 billion in the fourth quarter of 2009.

The company’s total revenue backlog was $13.0 billion at the end of December 2010, compared to $10.8 billion at the end of December 2009. The $13.0 billion backlog for 2010 excludes any fourth-quarter 2010 bookings of Libya projects. The company said it had “decided to remove these projects as a precautionary measure that will remain in place until the situation is further clarified.”

Pierre Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc., summarized the company’s overall results: “I am pleased with what was accomplished in 2010. We signed many new contracts, were awarded two new concessions in Canada and invested in one concession in India, disposed of two non-core Infrastructure Concession Investments and added about 1,200 new employees from business acquisitions, mainly in Colombia. We also increased our net income by 21.6%, continued to build up a strong revenue backlog, and maintained a solid cash position. Even given recent events  we expect our 2011 net income to be in line with 2010, when we exclude the gains recorded in 2010 from the disposal of the two Infrastructure Concession Investments and from the disposal of certain technology solution assets.” SNC-Lavalin is traded on the Toronto Stock Exchange (SNC). Its shares closed at $54.71 March 7. Over the past 12 months the share price has fluctuated between a high of $63.23 in January 2011 and a low of $41.59 in June last year.

The company generated 25% of its revenue from Africa and the Middle East in 2009.

For SNC-Lavalin’s announcement, click here.