McDermott reports third quarter 2005 results
Posted: 9 November 2005
Net income of $58.5 million, $0.80 per diluted share
McDermott International, Inc. reported net income of $58.5 million, or $0.80 per diluted share, for the 2005 third quarter, compared to net income of $18.3 million, or $0.27 per diluted share, for the corresponding period in 2004.
Weighted average common shares outstanding on a fully diluted basis were approximately 73.3 million and 68.4 million for September 30, 2005 and September 30, 2004, respectively.
Revenues in the third quarter of 2005 were $503.5 million, compared to $450.2 million in the corresponding period in 2004, reflecting increases at both consolidated segments. Operating income was $74.1 million in the 2005 third quarter, compared to $39.8 million in the 2004 third quarter. Operating income for the third quarter of 2005 included approximately $0.2 million of corporate qualified pension expense, compared to $14.1 million of corporate qualified pension expense in the third quarter of 2004.
The reduction in corporate qualified pension expense reflects the spin-off of The Babcock & Wilcox Company (B&W) pension plan and related expense, which was completed on January 31, 2005.
In addition, beginning January 1, 2005, McDermott now allocates to its Government Operations segment the pension expense related to that segment.
"McDermott produced solid results from its two consolidated businesses during the third quarter of 2005, and we continue to expect that B&W will be reconsolidated in our results during early 2006," said Bruce W. Wilkinson, Chairman of the Board and Chief Executive Officer of McDermott.
"This was an active quarter for the Company, including the activities associated with the currently proposed B&W settlement and the signing of approximately $1.0 billion of new awards at J. Ray."
As a result of the August 29, 2005 announcement, and the subsequent filing, of a currently proposed plan of reorganization for B&W's Chapter 11 settlement, beginning in the third quarter of 2005, McDermott has suspended recording the quarterly non-cash adjustment associated with B&W's previously negotiated settlement, as the previous plan is no longer considered probable.
In the third quarter of 2004, McDermott recorded an after-tax revaluation expense of $1.1 million associated with the revaluation expense of the previously negotiated settlement.
For more information see http://www.mcdermott.com/
Posted by Richard Price, Editor, EnergyME.com
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