Babcock & Wilcox recorded an increase in profits of $126.5 million during the fourth quarter of 2013 but offered a muted forecast for 2014 as it released its latest earnings report. While the company said it made a profit of $165.6 million during the fourth quarter of 2013, up from $39.1 million during the same period in 2012, revenue was down 7.2 percent to $802.8 million and earnings per share dipped to 52 cents from 56 cents. The earnings failed to meet projections by analysts, who had predicted earnings of 57 cents and $834.8 million in revenue. B&W also scaled back its outlook for 2014, suggesting consolidated revenues of $2.9 to $3.1 billion and earnings per share of $2 to $2.20. Analysts had projected earnings of $3.37 billion and earnings per share of $2.39. “The performance of our largest business segments was strong this quarter,” B&W President and CEO Jim Ferland said in a statement. “Nuclear Operations again posted close to record-level revenues and continued strong margin performance, while our Power Generation segment produced an operating margin in excess of 13 percent, driven by solid project execution and continuing momentum from our ongoing cost-reduction initiatives. Bookings in our commercial segments continue to reflect soft market conditions and uncertainty over environmental regulations, but we are beginning to see a modest yet measurable improvement in bidding activity in the Power Generation segment and are starting to gain traction on new equipment orders in the Nuclear Energy segment.”
LATEST BABCOCK & WILCOX EARNINGS REPORT A MIXED BAG
Ferland didn’t mention B&W’s Technical Services Group, which includes work for the National Nuclear Security Administration and the Department of Energy’s cleanup program. Revenue for TSG decreased $2.2 million from the fourth quarter of 2012 to $26.4 million, down 7.7 percent from $28.6 million, and operating income dipped $3.6 million, which the company said was “principally due to new lower award fees at certain National Nuclear Security Administration sites.”
Calvert Cliffs to receive uprate in Constellation, Amazon 20-year nuclear power deal
Constellation Energy’s Calvert Cliffs Clean Energy Center in Lusby, Md., will add 190 megawatts to its current capacity under a new power purchase agreement (PPA) between the company and Amazon. Amazon and Constellation announced this 20-year-long deal on Sept. 30. Constellation said the deal “will enable more than $3 billion in Maryland infrastructure investment, including […]