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MCDERMOTT INTERNATIONAL REPORTS YEAR END REVENUES

 NEW ORLEANS, May 11 /PRNewswire/ -- Robert E. Howson, chairman of the board and chief executive officer of McDermott International, Inc., (NYSE: MDR) today reported that revenues for the fiscal year ended March 31 were $3,172,555,000 compared with $3,524,482,000 a year earlier.
 Income from continuing operations for the March 31 fiscal year was $67,323,000, or $l.29 a share, primary and fully diluted, compared with $80,537,000, or $1.75 a share, primary and fully diluted, in the prior fiscal year.
 For the quarter ended March 31, revenues were $762,662,000 compared with $790,165,000 for the same period last year. Income from continuing operations for the quarter ended March 31 was $26,604,000, or $0.51 a share, primary and fully diluted, compared with income of $1,356,000, or $0.03 a share, primary and fully diluted, in the same quarter a year ago.
 Operating income, which includes equity in income of investees, was $165,377,000 for the fiscal year ended March 31, compared with $121,055,000 in fiscal 1992. For the quarter ended March 31, operating income totaled $41,401,000 compared with $23,566,000 for the same period in fiscal 1992.
 The company has elected to adopt two new Statements of Financial Accounting Standards (SFAS No. 106 and No. 109) earlier than the mandatory date, which resulted in a net loss for fiscal 1993 of $188,732,000, or $3.63 a share, primary and fully diluted. This compared with net income of $77,169,000, or $1.67 a share, primary and fully diluted, in fiscal 1992.
 Net income for the March 1993 quarter was $16,783,000, or $0.32 a share, primary and fully diluted, compared with net income of $4,158,000, or $0.08 a share, primary and fully diluted, for the comparable quarter a year ago.
 The cumulative effect of the adoption of SFAS No. 106, "Employers' Accounting For Postretirement Benefits Other Than Pensions", resulted in an after-tax charge to earnings of $249,351,000, or $4.79 a share. The adoption of SFAS No. 109, "Accounting For Income Taxes", resulted in an increase in net income of $3,727,000, or $0.07 a share.
 The net loss for fiscal 1993 also included extraordinary losses of $10,431,000, or $0.20 a share, related to the redemption of certain debentures and notes.
 Results for the fiscal year and quarter ended March 31 include gains of $23,968,000 from the sale of the company's remaining interests in its commercial nuclear joint ventures. For the fiscal year ended March 31, 1992, the gain on the sale of portions of these interests amounted to $57,397,000.
 Howson said: "We are pleased that in fiscal 1993 we achieved the financial goals we set for ourselves a year ago. Although some units surpassed their operational financial targets, others did not. However, our overall operating results were about as we expected, and we made significant progress toward our long-term financial goals."
 Howson continued: "Revenues from the Power Generation Systems and Equipment segment declined to $1,523,476,000 in fiscal 1993 from $1,593,501,000 in fiscal 1992. Segment operating income also declined to $56,467,000 from $109,774,000 a year ago. These results were below our expectations. The segment's Power Generation Group was hampered by weak economies, worldwide, but especially in its domestic utility and industrial markets where conditions were extremely competitive. However, several major projects booked early in the fiscal year strengthened our position in our international markets.
 "While results from the segment's Government Group were lower than a year ago, this was expected. Reduced defense spending by the U.S. government has required us to downsize our defense operations and orient ourselves toward new, non-defense markets, both commercial and government in which we have had recent success."
 Howson added: "The Marine Construction Services segment's revenues of $1,649,653,000 in fiscal 1993 were below the previous year's level of $1,936,618,000. However, taking into consideration the deconsolidation of McDermott-ETPM West, Inc. in December 1991, revenues were about the same year-to-year. The segment's operating income increased in fiscal 1993 to $67,652,000 from $55,908,000 in fiscal 1992.
 "Results from our marine activities were varied. The operating results reported in our Marine Construction Services segment were about as expected. Strengths in the Middle East and Southeast Asia offset weakness in fabrication operations in the Gulf of Mexico and North Sea.
 "Our marine construction joint ventures made strong operating improvement in fiscal 1993. The markets of these ventures resulted in better-than-expected contributions to income."
 Howson concluded: "For fiscal 1994, we have set the goal of continued improvement in operating profitability and earnings.
 "Our Power Generation segment should benefit from growing international activity, a sizable environmental equipment backlog, and the substantial market for replacement nuclear steam generators. Traditional defense markets will be smaller as defense spending is cut. However, our position as the sole source of nuclear fuel assemblies and components for the U.S. Navy will mitigate the effect on our government business, and operating results from our non-defense programs will continue to grow.
 "In the Marine Construction segment, activity in the Gulf of Mexico and North Sea fabrication operations will continue to be slow in fiscal 1994. However, our customers are planning major projects in West Africa and the Middle East, and in Southeast Asia which will be the strongest market over the next several years as expanding demand for LNG (Liquid Natural Gas) creates new opportunities for our marine construction operations."
 McDermott International, Inc. is a leading worldwide energy services company. The company and its subsidiaries manufacture steam-generating equipment, environmental equipment, and defense and aerospace products. They also provide engineering and construction services for industrial and utility facilities onshore, and to the oil and gas industry offshore.


A COMPARATIVE SUMMARY OF McDERMOTT INTERNATIONAL, INC. EARNINGS (LOSS)
 FOR THE FISCAL YEARS ENDED MARCH 31, 1993 and 1992
 (In thousands, except for shares and per share amounts)
 FISCAL YEAR ENDED
 March 31, March 31,
 1993 1992
 PRIMARY AND FULLY DILUTED:
 Earnings (Loss) Per Common and
 Common Equivalent Share:
 Continuing Operations $ 1.29 $ 1.75
 Discontinued Operations --- (0.08)
 Extraordinary Items (0.20) ---
 Accounting Changes (4.72) ---
 Net Income (Loss) $ (3.63) $ 1.67
 Revenues $ 3,172,555 $ 3,524,482
 Costs and Expenses 3,101,236 3,410,669
 Total 71,319 113,813
 Equity in Income
 of Investees 94,058 7,242
 Operating Income 165,377 121,055
 Other Income (Expense) - Net (57,955) 2,751
 Income From Continuing
 Operations Before Provision For
 Income Taxes, Extraordinary
 Items and Cumulative Effect of
 Accounting Changes 107,422 123,806
 Provision For Income Taxes 40,099 43,269
 Income From Continuing
 Operations before Extraordinary
 Items and Cumulative Effect of
 Accounting Changes 67,323 80,537
 Loss From Discontinued
 Operations --- (3,368)
 Income before Extraordinary Items
 and Cumulative Effect of
 Accounting Changes 67,323 77,169
 Extraordinary Items (10,431) ---
 Cumulative Effect of Accounting
 Changes (245,624) ---
 Net Income (Loss) $ (188,732) $ 77,169
 Weighted Average Number of
 Common and Common Equivalent
 Shares Outstanding During
 the Year: 52,004,348 46,102,197
 A COMPARATIVE SUMMARY OF McDERMOTT INTERNATIONAL, INC. EARNINGS
 FOR THE THREE MONTHS ENDED MARCH 31, 1993 and 1992
 (In thousands, except for shares and per share amounts)
 THREE MONTHS ENDED
 March 31, March 31,
 1993 1992
 PRIMARY AND FULLY DILUTED:
 Earnings (Loss) Per Common and
 Common Equivalent Share:
 Continuing Operations $ 0.51 $ 0.03
 Discontinued Operations --- 0.05
 Extraordinary Items (0.19) ---
 Net Income $ 0.32 $ 0.08
 Revenues $ 762,662 $ 790,165
 Costs and Expenses 733,693 765,517
 Total 28,969 24,648
 Equity in Income (Loss)
 of Investees 12,432 (1,082)
 Operating Income 41,401 23,566
 Other Income (Expense) - Net 3,783 (17,426)
 Income From Continuing
 Operations Before Provision
 For Income Taxes and
 Extraordinary Items 45,184 6,140
 Provision For Income Taxes 18,580 4,78
 Income From Continuing
 Operations before
 Extraordinary Items 26,604 1,356
 Income From Discontinued
 Operations --- 2,802
 Income before Extraordinary Items 26,604 4,158
 Extraordinary Items (9,821) ---
 Net Income $ 16,783 $ 4,158
 Weighted Average Number of
 Common and Common Equivalent
 Shares Outstanding During
 the Period: 52,460,799 51,323,227
 INFORMATION ABOUT McDERMOTT INTERNATIONAL, INC.
 OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS
 (In thousands)
 FISCAL YEAR ENDED
 March 31, March 31,
 REVENUES 1993 1992
 Power Generation Systems
 and Equipment $ 1,523,476 $ 1,593,501
 Marine Construction Services 1,649,653 1,936,618
 Intersegment Transfer
 Eliminations (574) (5,637)
 Total Revenues $ 3,172,555 $ 3,524,482
 FISCAL YEAR ENDED
 March 31, March 31,
 SEGMENT OPERATING INCOME (a) 1993 1992
 Power Generation Systems
 and Equipment $ 56,467 $ 109,774
 Marine Construction Services 67,652 55,908
 Total Segment Operating Income $ 124,119 $ 165,682
 (a) Reconciling items between Segment Operating Income and
 Operating Income on the Comparative Summary of Earnings
 are General Corporate Expenses and Equity in Income of
 Investees.
 INFORMATION ABOUT McDERMOTT INTERNATIONAL, INC.
 OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS
 (In thousands)
 THREE MONTHS ENDED
 March 31, March 31,
 REVENUES 1993 1993
 Power Generation Systems
 and Equipment $ 418,012 $ 427,300
 Marine Construction Services 344,932 362,692
 Intersegment Transfer
 Eliminations (282) 173
 Total Revenues $ 762,662 $ 790,165
 THREE MONTHS ENDED
 March 31, March 31,
 SEGMENT OPERATING INCOME (b) 1993 1992
 Power Generation Systems
 and Equipment $ 35,322 $ 33,063
 Marine Construction Services 8,527 2,441
 Total Segment Operating Income $ 43,849 $ 35,504
 (b) Reconciling items between Segment Operating Income and
 Operating Income on the Comparative Summary of Earnings
 are General Corporate Expenses and Equity in Income
 (Loss) of Investees.
 -0- 5/11/93
 /CONTACT: Don Washington of McDermott, 504-587-4080/
 (MDR)


CO: McDermott International, Inc. ST: Louisiana IN: OIL SU: ERN

RA-BR -- AT012 -- 7045 05/11/93 12:06 EDT
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