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MCDERMOTT INTERNATIONAL REPORTS RESULTS

 NEW ORLEANS, July 22 /PRNewswire/ -- Robert E. Howson, chairman of the board and chief executive officer of McDermott International, Inc. (NYSE: MDR), today reported that revenues for the first quarter of fiscal 1994, ended June 30, 1993, were $703,418,000 compared with $826,563,000 in the same quarter last year.
 Net income for the quarter was $25,676,000, or $0.48 a share, compared with a net loss of $242,884,000 or $4.69 a share, in last year's June quarter.
 The net loss for the June 1992 quarter reflects a net charge of $249,894,000, or $4.81 a share, related to the adoption of Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions.
 Operating income, which includes equity in income of investees, for the three months ended June 30, 1993, was $59,472,000 compared with $26,744,000 a year ago.
 General Corporate Expenses were higher in the June 30, 1993, quarter than a year ago because of the timing of expenses and non-recurring charges related to certain cost reduction initiatives.
 "Operating results for the first quarter of fiscal 1994 continued the positive trend which began 18 months ago," Howson said. "Revenues in the June 1993 quarter were lower than a year ago due to less procured materials and subcontract services. However, operating income and income from continuing operations were significantly higher.
 "The Power Generation Systems and Equipment segment had slightly lower operating income despite a favorable warranty reserve adjustment in the current quarter. Within the segment, the Power Generation Group's U.S. utility and industrial markets remained very competitive. These customers continued to be reluctant to commit capital to new projects because of the current economic environment and the longer-term uncertainties of proposed economic policies. However, the Group benefitted from improved international operations, strong markets for environmental equipment, and our position in the market for replacement nuclear steam generators. The Government Group's segment operating income was down compared with last year due to lower profit margins on its Naval Nuclear Reactors Program.
 "During the quarter, the Power Generation Group booked a $400 million order for three coal-fired boilers in Indonesia, and a $123 million wet flue-gas desulphurization system for Taiwan Power, raising total backlog for the Power Generation Systems and Equipment segment to $3 billion. This backlog will support improved results for the Group for the next several years," Howson said. "We also believe that the operations of the Government Group will show modest improvement over the foreseeable future.
 "Segment operating income from the Marine Construction Services segment was higher than last year," Howson said. "Fabrication activity in the Gulf of Mexico increased and marine construction profit margins improved. Marine construction operations in the Middle East, and Southeast Asia also showedimprovement. This activity more than offset depressed foreign fabrication operations and a lower level of engineering activity.
 "Operating results for the Marine Construction Services segment will remain mixed for the remainder of the fiscal year. We expect continued strength in the Middle East and Southeast Asia to be partially offset by weak markets in the Gulf of Mexico and the North Sea. However, we anticipate this segment will report operating results for the full year at approximately the same level as a year ago.
 "Our two major marine construction joint ventures turned in strong performances during the quarter. This level of activity is not expected to continue for the rest of the fiscal year. However, we anticipate these joint ventures will make a significant contribution to our overall results, although probably not equal to fiscal 1993," Howson concluded.
 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 THREE MONTHS ENDED JUNE 30, 1993 AND 1992
 (In thousands, except for shares and per share amounts)
 THREE MONTHS ENDED
 June 30, June 30,
 1993 1992
 Earnings (Loss) Per Common and
 Common Equivalent Share:
 Primary and Fully Diluted:
 Continuing Operations $ 0.48 $ .05
 Accounting Changes --- (4.74)
 Net Income (Loss) $ 0.48 $ (4.69)
 Revenues $ 703,418 $ 826,563
 Costs and Expenses 690,995 813,203
 12,423 13,360
 Equity in Income
 of Investees 47,049 13,384
 Operating Income 59,472 26,744
 Other Income and
 Expenses - Net (21,187) (19,069)
 Income From Continuing
 Operations Before Provision
 For Income Taxes and Cumulative
 Effect of Accounting Changes 38,285 7,675
 Provision For Income Taxes 12,609 4,935
 Income from Continuing
 Operations Before Cumulative
 Effect of Accounting Changes 25,676 2,740
 Cumulative Effect of Accounting
 Changes --- (245,624)
 Net Income (Loss) $ 25,676 $ (242,884)
 Weighted Average Number of
 Common and Common Equivalent
 Shares Outstanding:
 Primary and
 Fully Diluted 53,181,016 51,758,020
 INFORMATION ABOUT McDERMOTT INTERNATIONAL, INC.
 OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS
 (In thousands)
 THREE MONTHS ENDED
 June 30, June 30,
 REVENUES 1993 1992
 Power Generation Systems
 and Equipment $ 344,437 $ 347,155
 Marine Construction Services 359,297 479,516
 Intersegment Transfer
 Eliminations (316) (108)
 Total Revenues $ 703,418 $ 826,563
 THREE MONTHS ENDED
 June 30, June 30,
 OPERATING INCOME 1993 1992
 Segment Operating Income:
 Power Generation Systems
 and Equipment $ 6,837 $ 11,040
 Marine Construction Services 20,327 14,131
 Total Segment Operating Income 27,164 25,171
 Equity in Income of Investees:
 Power Generation Systems
 and Equipment 3,517 1,899
 Marine Construction Services 43,532 11,485
 Total Equity in Income
 of Investees 47,049 13,384
 General Corporate Expenses (14,741) (11,811)
 Total Operating Income $ 59,472 $ 26,744
 -0- 7/22/93
 /CONTACT: Don Washington of McDermott International, 504-587-4080/
 (MDR)


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

BN-BR -- AT008 -- 4477 07/22/93 11:09 EDT
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Date:Jul 22, 1993
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