Baker Expects Third Quarter Charge.PITTSBURGH--(BUSINESS WIRE)--Nov. 8, 1999-- Michael Baker Corporation Michael Baker Corporation is an engineering and energy management corporation headquartered in the Pittsburgh suburb of Moon Township, Pennsylvania. Its headquarters is located in Airside Business Park, an office park near the Pittsburgh International Airport that the company (AMEX AMEX See: American Stock Exchange :BKR BKR Baker BKR Birkirkara (postal locality, Malta) BKR Breaker BKR Broadcast Key Rotation BKR Best-Known Recipe ) announced today that it expects to record a pre-tax charge approximating $11 million in the third quarter of 1999. The company said the charge is composed of a number of factors, including: separation costs related to the departure of former officers and employees; a write back of earnings in the Buildings Engineering operation; various project losses in the Heavy and Highway construction division; write off of the goodwill related to the 1998 acquisition of GeoResearch, Inc.; and costs related to subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. payments and claims on the Universal Studios CityWalk project. The company expects to announce its third quarter 1999 earnings prior to November 15. With respect to the payments to CityWalk subcontractors, Richard L. Shaw, chairman and chief executive officer, said that "With the assistance of the court-appointed administrator, the company has been able to resolve issues with several major subcontractors, aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. them with us in a focused effort to recover amounts due from Universal." On other company matters, Shaw said the wind down of the Buildings Construction business is proceeding ahead of plan, and discussions continue with parties interested in acquiring the Heavy and Highway business. He added that if a sale of this business is not consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. soon, it will be wound down in a similar manner as the Buildings Construction business. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these charges, we continue to have positive cash flow, and our other businesses, including Transportation Engineering, Civil, Environmental and Energy, are performing well," Shaw concluded. "Our first priority remains resolution of the Universal issue in a fair and equitable manner. At the same time, we are reducing our overhead structure, realigning our businesses and concentrating on growing those operations where we have demonstrated an ability to manage successfully." Michael Baker Corporation (www.mbakercorp.com) provides engineering, management, and operations and technical services through its five business units: buildings, civil, energy, environmental, and transportation. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion