B&W REPORTS SMALL DROP IN INCOME IN SECOND QUARTER 2013

Babcock & Wilcox reported yesterday a slight drop in income in the second quarter of 2013 compared to the same period last year. For the second quarter of 2013, B&W’s operating income was $98.7 million, down $11.4 million from the same quarter in 2012. The company’s Power Generation, Nuclear Energy and Technical Services segments reported decreases in operating income from the second quarter of 2012 to the second quarter of 2013 of $27.6 million, $12.4 million and $3.7 million, respectively, according to a press release. Those decreases, though, were offset by increased operating income in B&W’s mPower and Nuclear Operations segments of $31.6 million and $10.3 million, respectively.

B&W also reported an overall increase in revenue—$886.1 million in the second quarter of 2013, up $33.5 million from the second quarter of 2012.“Overall, B&W’s second quarter results reflect solid performances across our business units, highlighted by improved bookings and revenue, as well as the benefit of the DOE grant,” President and CEO James Ferland said in the release. “What would have been an exceptionally strong quarter for operating income and margin was impacted by the recognition of significant losses on a single project. Claims against the customer are substantial in value and any recovery of these additional losses will be realized in future periods.”  According to the B&W release, the  drop in the Power Generation segment’s operating income was “driven by the recognition of $30.2 million of additional contract losses related to revised estimated costs to complete a biomass boiler project largely due to unforeseen worksite conditions, for which losses previously were recorded in the fourth quarter of 2012.” B&W is scheduled to discuss its latest earnings report with investors today at 8:30 a.m. Eastern. For more information, please click here.