SNC-LAVALIN EARNINGS RISE 68 PER CENT IN 1994 (PART 1 OF 2 - TABLES TO FOLLOW).

MONTREAL, QUEBEC--(BUSINESS WIRE)--MARCH 2, 1995--SNC Lavalin (TSE, ME:SNC.A) The SNC-Lavalin Group's net income for the year ended December 31, 1994, was $27.3 million up 68 per cent from $16.3 million in 1993. The earnings per share were $1.75 in 1994 compared with $1.08 per share the previous year.

Revenues in 1994 were $844.6 million compared with $796.9 million in 1993 up 6 per cent; with $677.8 million of the 1994 total coming from engineering-construction and $166.8 million from manufacturing. Operations in 1994 generated a cash flow of $3.34 per share. Consequently, cash increased by $69.6 million during the year to $187.1 million at December 31, 1994.

In the fourth quarter of 1994 the company's net income was $5.4 million, or $0.35 per share, compared with $3.9 million, or $0.25 per share, in the fourth quarter of 1993. Revenues were $273.6 million versus $214.6 million in the same period the previous year. Of the total 1994 fourth quarter revenues, $227.5 million came from engineering-construction and $46.1 million from manufacturing.

Guy Saint-Pierre, SNC-Lavalin president and chief executive officer, attributed the good performance to higher earnings from engineering-construction in both Canada and international markets. "In addition," he said, "SNC Industrial Technologies contributed to our profit improvement through better margins and gains in efficiency. Following implementation of our reorganization plan for Securiplex Technologies, we reduced operating losses and restructuring costs compared to 1993. Overall manufacturing revenues were lower than in 1993, but this was because we divested Securiplex Technologies' European units. Finally, at the corporate level, early reimbursement of subordinated debentures, combined with the increase in our cash position generated by our engineering-construction projects and higher average interest rates resulted in a substantial increase in interest income.

"In 1994," he continued, "we made progress in our strategic plan to concentrate more fully on our core engineering-construction business and to become more widely established in growing markets. We acquired 50 percent of ByR Ingenieria y Construccion S.A. of Chile, an engineering firm with extensive experience in mining and metallurgical projects.

To serve the worldwide market in that same industry we set up a process engineering group in London, England. In India, we formed a joint venture with a major local company to carry out various power projects, and we created a new Team Canada consortium to serve the same market in China."

Among major new contracts obtained in 1994, Mr. Saint-Pierre mentioned the turnkey rapid light transit system in Kuala Lumpur, refinery modernizations in Russia and Trinidad and the turnkey construction of an airport in Kenya.

"On the manufacturing side," he said, "we reached an out-of-court settlement with the Government of Canada covering our claim arising from the purchase of Canadian Arsenals in 1986. We received an immediate cash compensation of $15 million, with additional compensation expected to be derived from the net proceeds of the sale of surplus ammunition that the government has authorized us to sell on its behalf."

Looking forward to the coming year, Mr. Saint-Pierre said: "Our engineering-construction backlog at December 31 was $1.5 billion, 22 per cent increase compared with the backlog at the beginning of 1994. We look forward to continued modest improvement in our engineering-construction business in Canada, and improved growth internationally, particularly in Africa, Middle East, Eurasia, Asia and Latin America."

The board of directors at its meeting today declared a quarterly dividend of $0.09 on Class A subordinate voting and Class B shares, payable March 30, 1995 to shareholders of record at March 16, 1995.

The SNC-Lavalin Group is a Canadian company with operations in engineering-construction and manufacturing, with close to 5,000 employees in offices across Canada and in 26 other countries, currently working internationally in some 90 countries. It is listed on Montreal and Toronto stock exchanges.

CONTACT: Robert Racine, Vice-President, Public Affairs

SNC-Lavalin Group Inc., 514/393-1000