Shaw Group declares Q3 fiscal 2006 earnings guidance
10 Jul '06
5 min read
The Shaw Group Inc announced financial results for the three months ended May 31, 2006. Net loss for the three months was $16.7 million, or $0.21 per diluted share. In comparison, for the three months ended May 31, 2005, Shaw reported a net loss of $21.7 million, or $0.31 per diluted share. Revenues were $1,226.1 million compared to $891.0 million in the prior year period.
The third quarter 2006 results include a non-cash charge of approximately $48.2 million, $29.2 million after taxes, or approximately $0.37 per diluted share, for the previously announced unfavorable ruling received in the AES Wolf Hollow project litigation. Excluding the charge, net income would have been $12.5 million, or $0.16 per diluted share.
Shaw's backlog totaled a record $8.1 billion as of May 31, 2006, an increase of $1.4 billion from August 31, 2005. Approximately $3.8 billion, or 47 percent, of the backlog is expected to be converted during the next 12 months. Over $3.3 billion, or 41 percent, of the backlog is comprised of projects for fossil fuel, nuclear and other power generating plants, and over $2.0 billion, or 25 percent, of the backlog is made up of the chemical industry projects. Approximately $2.7 billion, or 33 percent, of the backlog is in the environmental and infrastructure sector, primarily contracts with federal and other governmental agencies, including emergency response.
J.M. Bernhard, Jr., Chairman and Chief Executive Officer of The Shaw Group Inc.,said, "Our financial results for the third quarter of fiscal 2006 reflected higher activity compared to the prior year in each of our business units. However, revenues from emergency response and disaster relief work were less than anticipated, as certain task orders totaling in excess of $100 million were cancelled.
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