March 17, 2014

B&W REPORTS INCREASE IN PROFITS DURING THIRD QUARTER OF 2013

By ExchangeMonitor

Babcock & Wilcox reported an increase in profits during the third quarter of 2013 as it was buoyed by a strong quarter from its Technical Services Group, according to quarterly earnings reported yesterday by the company. B&W said net-income during the third quarter of 2013 was $60.4 million (54 cents a share), which represented a $9 million increase from the same period a year ago, during which net income was $51.4 million (43 cents a share). The increases came as overall income decreased $2.3 million to $82.1 million during the quarter, down from $84.4 million during the same timeframe in 2012, and revenues fell to $774.8 million, down $32.8 million. Earnings per share were one cent less than projections from analysts polled by Thomson Reuters.

Operating income for the company’s Technical Services Group, which runs its National Nuclear Security Administration and Department of Energy work, increased $6.7 million to $18.4 million during the third quarter of 2013, up from $11.7 million for the same 2012 period. B&W said the increase was “primarily attributable to improved project performance resulting in higher estimated award fees” as well as a $1.8 million decrease in selling, general, and administrative expenses that it said were due to lower business development costs from the timing of new proposals. Revenue for the Technical Services Group were down slightly by $800,000, decreasing to $25.2 million from $26 million. It said “lower reimbursable costs at our Naval Reactor decommissioning and decontamination project” was the main driver for the decrease.

The company also addressed its second loss in the NNSA’s Y-12/Pantex procurement, which B&W had twice protested previously. The NNSA again selected Bechtel-led Consolidated Nuclear Security for the lucrative contract Nov. 1 and will debrief bidders, including B&W-led Nuclear Production Partners, Friday. “We will evaluate information received during the NNSA debriefing process to determine our next steps,” the company said. “In the meantime, we will continue to manage these sites under existing contracts through our joint ventures and during any transition period, which has yet to be determined.”

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