Lynchburg, Va.,-based BWX Technologies on Wednesday reported a drop in both revenue and profit during the first quarter of 2019.
The Department of Energy contractor recorded revenue of $416 million, down 9% from $457 million in the first three months of 2018, according to a press release.
Meanwhile, net income dropped from $66.4 million, or $0.66 per diluted share, in first-quarter 2018 to $49 million, or $0.51 per share, in the same three-month period of 2019.
The Nuclear Operations Group, which manages nuclear naval business and uranium downblending contracts with the Energy Department’s semiautonomous National Nuclear Security Administration (NNSA), reported revenue of $305 million for the first three months of this year, down about 3.7% from nearly $317 million a year ago. That was due in part to timing of certain purchases and lower missile tube work volume, the earnings report says.
The group’s quarterly operating income was $57.6 million, a drop of 15% from $67.6 million in 2018.
The Nuclear Power business brought in $84 million, falling 25% from almost $113 million a year ago due to winding down a China steam generator project. The China business was partly offset by increased revenue from purchase of a medical isotope company. The group’s operating income was $12.6 million, a 42% year-over-year reduction from $21.7 million.
The Nuclear Services Group, which includes BWXT’s operations for the DOE Office of Environmental Management, reported revenue of $29 million in the quarter, slightly down from $30 million last time around. The segment’s operating income was $1.6 million, up from $1.2 million in the first quarter of 2018.
“While first quarter results were lighter than the prior-year period, they were in line with our expectations,” said BWXT President and CEO Rex Geveden. “We anticipate a similar outcome in the second quarter preceding the Columbia-Class production ramp and Nuclear Services Group growth, which will result in nearly sixty percent of our earnings in the second half of the year.”
The company is keeping its 2019 earnings guidance of roughly $2.50 per share.
During the quarter the Energy Department canceled plans to award a new liquid waste management contract at the Savannah River Site in South Carolina. For the time being the SRS liquid waste work is still being done under an 18-month, $750 million contract extension for AECOM-led Savannah River Remediation, of which BWXT is a partner.
BWX Technologies is a minority partner in a number of contractor teams throughout the DOE weapons complex, including an AECOM-led venture that runs the DOE Waste Isolation Pilot Plant in New Mexico, and the Fluor-led decontamination and decommissioning team at the Portsmouth Site in Ohio.
