Operating income for B&W’s Technical Services Group took a significant dip in the fourth quarter of 2014, dropping to $345,000—$10 million less than during the fourth quarter of 2013—as B&W dealt with the loss of its Y-12 and Pantex management and operating contracts and lower fee from weapons complex sites impacted by the Waste Isolation Pilot Plant radiological release, most notably at Los Alamos National Laboratory. Overall, B&W reported a loss of $156.5 million in operating income, down $451.8 million from the same period a year ago, thanks to an adjustment for pension and other post-retirement benefits and restructuring activities associated with the company’s planned spinoff of its Power Generation business. Without the adjustments, the company reported $108.3 million in income during the fourth quarter, up from $86.7 million in the fourth quarter of 2013, as it was buoyed by its Power Generation and Nuclear Operations segments.
Its Technical Services Group continued to reel from its Y-12/Pantex defeat, which company President Jim Ferland previously said represented about half of the sector’s revenue. For the fourth quarter of 2014, revenues were $14.1 million, down from $26.3 million during the same period in 2013. Operating income was also down for B&W during the third quarter of last year, decreasing $13.4 million to $5 million. For the year, B&W reported $35.2 million in income, down from $58.2 million in 2013. The loss of the Y-12/Pantex contract contributed $12.5 million to the decrease, B&W said in a Securities and Exchange Commission filing. In a statement, Ferland did not reference the performance of the Technical Services Group, but said that the spinoff of the Power Generation Business was on track to be completed in mid-summer. “The positive performance and significant momentum of the two core businesses at the end of the year reinforces our belief that the planned spin of the Power Generation business will result in two strong businesses with opportunities for increased growth,” Ferland said.
