March 17, 2014

B&W SEES REVENUE INCREASE IN THIRD QUARTER

By ExchangeMonitor

Babcock & Wilcox yesterday reported a revenue increase of more than 10 percent in the third quarter of 2011, though the company also saw a drop in operating income from last year. For the third quarter of 2011, B&W reported revenues of $707.6 million, an increase of $74.8 million, or 11.8 percent, from the same period last year. Operating income for the third quarter of 2011was $57.6 million, compared to 65.1 million for the third quarter of 2010. In a release, though, B&W noted that the drop in operating income took into account, “approximately $10.6 million related to the accounting for non-cash, non-deductible in-kind research and development costs received by GmP [Generation mPower, LLC] and $3.1 million related to the finalization of a Nuclear Energy segment loss contract. Without the impact of these items, operating income was $71.3 million, an increase of $6.2 million from the third quarter of 2010.”

In the release, B&W President and CEO Brandan Bethards said, "Recently, several of the Company’s growth initiatives have taken important steps forward. … First, bidding activity for environmental equipment and projects is strong with the early bidding activity beginning to move through the awards stage. We have been awarded a number of environmental projects recently, some of which we have announced publicly, and others are in the late stages of negotiations. Secondly, we were awarded a contract to design certain components of the nuclear propulsion system of the next class of ballistic missile submarine, or the Ohio Class replacement submarine program. This contract is the first in a series that we expect to receive under the current program schedule. … . Lastly, we continue to work with TVA to assist in the construction permit application preparation for submission to the U.S. Nuclear Regulatory Commission (NRC) in 2013. The B&W mPower small modular reactor program continues to move forward towards a goal to complete a power generation facility based on B&W mPowerTM technology by 2020.”

B&W is scheduled to hold a call with investors today at 8:30 a.m. to discuss its latest financial results. Also scheduled to hold earnings calls with investors today is EnergySolutions at 10 a.m. and URS at 5:00 p.m.

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