Alissa Tabirian
NS&D Monitor
8/7/2015
BWX Technologies’ (BWXT) Technical Services Group (TSG) is “positioning” for Department of Energy (DOE) work that could include management and operation of Sandia National Laboratories and other facilities, Sandy Baker, BWXT president and CEO, said during the company’s second-quarter results conference call yesterday. “Looking forward, TSG is actively positioning for significant DOE opportunities over the next two years that include management and operations of Sandia National Laboratories, the Savannah River Site, and the Nevada [National] Security Site,” Baker said.
The management and operation contract competition for Sandia has attracted incumbent contractor Lockheed Martin Corp., as well as several New Mexico universities, but competing contractors have largely refrained from commenting on their intentions to bid. “BWXT’s capabilities and experience are a good fit,” company spokeswoman Aimee Mills said to NS&D Monitor regarding the Sandia contract. “We will continue to explore the opportunity as more information becomes available.” Sandia is responsible for producing and testing non-nuclear components of nuclear weapons systems.
BWXT announced second-quarter 2015 revenues of “$357.1 million, a decrease of $5.4 million, or 1.5 [percent], from the second quarter of 2014.” TSG’s revenue fell by $4.4 million from the second quarter of 2014, from $26 million to $21.6 million, while its operating income “decreased $9.6 million in the quarter to $5.5 million, primarily attributable to the loss of the Y-12 National Security Complex and Pantex Plant contracts,” the news release says. Consolidated Nuclear Security took over management of both sites in 2014.
The company’s other business units reported minor revenue changes in comparison.
BWXT completed its split from Babcock & Wilcox Co. last month, separating the power generation spin-off B&W Enterprises from the newly named BWXT. The new company’s TSG business unit is responsible for managing the company’s contracts with DOE and the National Nuclear Security Administration (NNSA).
“While the Technical Services segment remains focused on improving performance across its operations, we continue to be optimistic about the segment’s growth opportunities,” BWXT Executive Chairman John Fees said in the release. “Now that the spin-off is complete, we will accelerate our strategies for driving the Company’s growth and continuing to return value to our shareholders.”
