Babcock & Wilcox Profit Falls On Lower Revenue - Update

(RTTNews) - Babcock & Wilcox Co (BWC), a clean energy technology company, Monday reported a decline in first-quarter profit, hurt by lower revenues at its power generation and nuclear energy businesses. Quarterly earnings were in line with Wall Street estimates, but revenues missed expectations.

The company reaffirmed its guidance for 2014.

Charlotte, North Carolina-based Babcock & Wilcox makes nuclear components for customers in the power and other steam-using industries.

The company posted first-quarter net income of $45 million, compared with $47.2 million last year. On a per-share basis, earnings were unchanged at $0.41.

Excluding items, adjusted earnings for the quarter were $0.42 per share, compared with $0.46 per share a year ago.

On average, 10 analysts polled by Thomson Reuters expected earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter slid to $662 million from $805.4 million in the prior year. Analysts expected revenues of $704.8 million for the quarter.

Among segments, power generation revenue was lower by $149.4 million compared with last year, mainly on an decline in new build environmental revenue as uncertainties persisted over the outcome of environmental regulations.

Nuclear Energy revenue was lower by $15.7 million, due partly to the decision to discontinue the U.S. projects business.

Meanwhile operating expenses for the quarter decreased to $623.6 million from $760 million last year.

For fiscal year 2014, Babcock still expects adjusted earnings of $2.00 to $2.20 per share and revenues of $2.90 billion to $3.10 billion. Analysts expect earnings of $2.17 per share on revenues of $2.96 billion for the year.

Babcock stock closed Monday at $34.81, up $0.17 or 0.49%, on a volume of 2.2 million shares.