By Debbie Cai
Babcock & Wilcox Co.'s (BWC) third-quarter earnings slipped
3.9% as the power-plant technology company recorded
investment-related impairment charges.
The company, which spun off from McDermott International Inc.
(MDR) in 2010, had previously posted a string of earnings
growth.
Analysts from Citigroup Inc. (C) said at the end of September
that Babcock & Wilcox was competitively well positioned in all
its segments and end markets, and among other things was poised to
benefit from environmental-controls spending.
It also initiated a quarterly dividend of eight cents a share
and a $250 million share repurchase program.
The company said it unveiled a pension-plan freeze after 2015
for salaried participants and will significantly lower pension
contributions over the next couple of years.
Babcock & Wilcox reported a profit of $38.3 million, or 34
cents a share, down from $39.9 million, or 39 cents a share, a year
earlier. Excluding $25.3 million of previously unrecognized tax
benefits and $28.6 million of non-cash impairment charges related
to USEC Inc. preferred stock, earnings were down at 37 cents from
39 cents.
Revenue grew 14% to $807.6 million as power generation segment
revenue rose 11% to $426.4 million, offsetting a decline in its
technical services segment.
Analysts polled by Thomson Reuters most recently projected
earnings of 44 cents on revenue of $830 million.
As of Sept. 30, backlog was $5.44 billion, up 17% from a year
earlier.
Shares closed Wednesday at $26.25 and were unchanged after
hours. The stock was up 16% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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