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MCDERMOTT INTERNATIONAL REPORTS RESULTS

 NEW ORLEANS, Oct. 26 /PRNewswire/ -- Robert E. Howson, chairman of the board and chief executive officer of McDermott International, Inc. (NYSE: MDR), today reported that revenues for the three months ended Sept. 30, 1993, were $777,459,000 compared with $734,610,000 for the same quarter last year.
 Net income for the quarter this year was $29,608,000 compared with $18,553,000 for the same quarter a year ago. Primary and fully diluted earnings for the quarter were $0.52 a share compared with $0.36 a share last year. Results for last year's quarter have been restated to reflect the adoption of Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions.
 For the six months ended Sept. 30, 1993, revenues totaled $1,480,877,000 compared with $1,561,173,000 in the same period last year. Net income for the first half of this year was $55,284,000, or $1.00 a share, primary and fully diluted, compared with a net loss of $224,331,000, or $4.33 a share, for the first half of fiscal 1993.
 The net loss for the first six months of fiscal 1993 includes a net charge of $245,624,000, or $4.74 a share, related to the adoption of SFAS No. 106 and SFAS No. 109, Accounting for Income Taxes.
 Operating income, which includes equity in income of investees, for the three months ended Sept. 30, 1993, was $51,135,000 compared with $40,048,000 for the same period last year. For the first six months of fiscal 1994, operating income was $110,607,000 compared with $66,792,000 for the same period a year ago.
 "Revenues from both our Power Generation Systems and Equipment and our Marine Construction Services segments increased in the second quarter, compared to the same period a year ago," Howson said. "Operating income for the quarter was also higher, primarily because of improvements in the Marine Construction segment.
 "Power Generation revenues increased because of higher revenues from replacement nuclear steam generators, the fabrication and erection of fossil fuel steam and environmental control systems, and the repair and alteration of existing systems," Howson said.
 "Improvements in the Power Generation segment operating income were mostly offset by the write-off of receivables for asbestos-related product liability claims paid under a policy for the year 1979. The write-off resulted from an averse court decision in a case concerning insurance coverage for that year. The net expense after taxes was approximately $6.3 million, or $0.12 a share. While we have appealed this decision, we continue to evaluate its future financial effects.
 "In our Marine segment, revenues were higher than a year ago as the result of the inclusion of Delta Catalytic Corporation in the segment. We acquired a controlling interest in Delta Catalytic in June. The increase in revenues was offset in part by lower revenues from our foreign fabrication operations, especially Scotland," Howson said.
 "Segment operating income also improved for the quarter, the result of better margins and lower operating costs on fabrication and marine work, worldwide, and the inclusion of Delta Catalytic. In addition, our marine joint ventures turned in a strong performance," Howson said.
 "Our operating results for the remainder of the year should not be as strong as in the first six months, nor as possibly strong as in the second half of fiscal 1993. Our Power Generation Group's U.S. utility and industrial markets remain very competitive, and we continue to anticipate cutbacks in our Government Group. In our Marine Construction Services segment, markets in the Gulf of Mexico and the North Sea will remain weak. While the equity income from our marine joint ventures presently exceeds the total for all of fiscal 1993, their contribution will drop substantially for the remainder of the fiscal year as the result of seasonal slowdowns," Howson said.
 "However, our longer term outlook remains positive. We expect continued strength in our foreign power generation markets and our environmental equipment markets. Our engineering and shipyard markets should also be strong. Our marine markets in the Middle East should maintain their current level, while the previously announced award of significant contracts from Shell and Enserch in early October indicates the potential for renewed strength in our Gulf of Mexico markets," 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
 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1993 AND 1992
 (In thousands, except for shares and per share amounts)
 THREE MONTHS ENDED
 September 30, September 30,
 1993 1992
 Earnings Per Common and
 Common Equivalent Share:
 Primary and Fully Diluted $ 0.52 $ 0.36
 Revenues $ 777,459 $ 734,610
 Costs and Expenses 772,640 738,003
 Equity In Income
 of Investees 46,316 43,441
 Operating Income 51,135 40,048
 Other Expense - Net (10,821) (18,491)
 Income Before Provision
 For Income Taxes 40,314 21,557
 Provision For Income Taxes 10,706 3,004
 Net Income $ 29,608 $ 18,553
 Weighted Average Number of
 Common and Common Equivalent
 Shares Outstanding 53,616,326 51,782,692
 A COMPARATIVE SUMMARY OF McDERMOTT INTERNATIONAL, INC. EARNINGS
 FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1993 AND 1992
 (In thousands, except for shares and per share amounts)
 SIX MONTHS ENDED
 September 30, September 30,
 1993 1992
 Earnings (Loss) Per Common and
 Common Equivalent Share:
 Primary and Fully Diluted:
 Continuing Operations $ 1.00 $ 0.41
 Accounting Changes -- (4.74)
 Net Income (Loss) $ 1.00 $ (4.33)
 Revenues $ 1,480,877 $ 1,561,173
 Costs and Expenses 1,463,635 1,551,206
 Equity In Income
 of Investees 93,365 56,825
 Operating Income 110,607 66,792
 Other Expense - Net (32,008) (37,560)
 Income Before Provision
 For Income Taxes And Cumulative
 Effect of Accounting Changes 78,599 29,232
 Provision For Income Taxes 23,315 7,939
 Income Before Cumulative Effect
 of Accounting Changes 55,284 21,293
 Cumulative Effect of
 Accounting Changes -- (245,624)
 Net Income (Loss) $ 55,284 $ (224,331)
 Weighted Average Number of
 Common and Common Equivalent
 Shares Outstanding 53,398,672 51,770,357
 INFORMATION ABOUT McDERMOTT INTERNATIONAL, INC.
 OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS
 (In thousands)
 THREE MONTHS ENDED
 September 30, September 30,
 REVENUES 1993 1992
 Power Generation Systems
 and Equipment $ 391,841 $ 360,516
 Marine Construction Services 387,211 374,225
 Intersegment Transfer
 Eliminations (1,593) (131)
 Total Revenues $ 777,459 $ 734,610
 THREE MONTHS ENDED
 September 30, September 30,
 OPERATING INCOME 1993 1992
 Segment Operating Income:
 Power Generation Systems
 and Equipment $ 1,931 $ 1,239
 Marine Construction Services 16,615 8,583
 Total Segment Operating Income 18,546 9,822
 Equity in Income of Investees:
 Power Generation Systems
 and Equipment 3,632 2,241
 Marine Construction Services 42,684 41,200
 Total Equity in Income
 of Investees 46,316 43,441
 General Corporate Expenses (13,727) (13,215)
 Total Operating Income $ 51,135 $ 40,048
 INFORMATION ABOUT McDERMOTT INTERNATIONAL, INC.
 OPERATIONS IN DIFFERENT INDUSTRY SEGMENTS
 (In thousands)
 SIX MONTHS ENDED
 September 30, September 30,
 REVENUES 1993 1992
 Power Generation Systems
 and Equipment $ 736,278 $ 707,671
 Marine Construction Services 746,508 853,741
 Intersegment Transfer
 Eliminations (1,909) (239)
 Total Revenues $ 1,480,877 $ 1,561,173
 SIX MONTHS ENDED
 September 30, September 30,
 OPERATING INCOME 1993 1992
 Segment Operating Income:
 Power Generation Systems
 and Equipment $ 8,768 $ 12,279
 Marine Construction Services 36,942 22,714
 Total Segment Operating Income 45,710 34,993
 Equity in Income of Investees:
 Power Generation Systems
 and Equipment 7,149 4,140
 Marine Construction Services 86,216 52,685
 Total Equity in Income
 of Investees 93,365 56,825
 General Corporate Expenses (28,468) (25,026)
 Total Operating Income $ 110,607 $ 66,792
 -0- 10/26/93
 /CONTACT: Don Washington of McDermott International,


504-587-4080/
 (MDR)


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

BR-BN -- AT005 -- 6791 10/26/93 10:05 EDT
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Date:Oct 26, 1993
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