MONTREAL: Friday, March 1, 2002 -- — The SNC-Lavalin Group today reported its 10th consecutive year of net income growth excluding Highway 407 for the year ended December 31, 2001 and a dividend increase.
Net income excluding Highway 407 rose 11.5% to $59.2 million ($1.24 per share) compared to $53.1 million ($1.14 per share) in 2000. Including Highway 407, net income for the year 2001 increased by 10.8% to $26.4 million ($0.55 per share) compared to $23.9 million ($0.51 per share) in 2000. Backlog at the end of the year remained solid at $3.5 billion, although lower than last year's record $4.0 billion. Revenues for the year 2001 were a record high of $2.3 billion, up from $1.7 billion in 2000.
In the fourth quarter, revenues increased by 28.3% to $654.7 million compared to $510.4 million in 2000. Net income excluding Highway 407 for the fourth quarter of 2001 increased by 10.7% to $13.7 million ($0.28 per share) from $12.4 million in 2000 ($0.26 per share). Net income including Highway 407 was $2.9 million for the fourth quarter of 2001 compared to $4.5 million in 2000. The accounting loss from Highway 407 was higher, as expected, for 2001 as Highway 407 ceased to capitalize interest expenses related to construction once the Extensions were opened to traffic in the third quarter of 2001.
"We are satisfied with our financial and operational performances for 2001, and with the positive outcome from our highway concession," said Jacques Lamarre, President and Chief Executive Officer. The most recent development concerning Highway 407 is Capital d'Amérique CDP's commitment, effective January 1, 2002, to convert its debenture into common shares of the concession. In consequence, SNC-Lavalin's participation in Highway 407 will now be accounted for on a fully diluted basis of 22.6% instead of the prior conversion basis of 26.9%. This will result in an accounting after tax gain of approximately $10.0 million in the first quarter of 2002.
"We are optimistic about the year ahead given our solid base of technical know-how, diverse revenue distribution, our strong financial position and a wide range of project opportunities in Canada and around the world," said Mr. Lamarre.
Based on this positive outlook, the Board of Directors increased the quarterly dividend to $0.08 per share from $0.07 per share, payable on March 28, 2002, to shareholders of record on March 15, 2002.
SNC-Lavalin (TSE:SNC) is one of the leading groups of engineering and construction firms in the world and a global leader in the ownership and management of infrastructure. The SNC-Lavalin group of companies has nearly 10,000 employees in offices across Canada and in 30 other countries around the world. SNC-Lavalin is currently working in some 100 countries. |
