McDermott Subsidiary Receives More Than $1 Billion of U.S. Government Awards
05 Februar 2009 - 2:00PM
Business Wire
McDermott International, Inc. (NYSE: MDR) (�McDermott�),
announced today that The Babcock & Wilcox Company (�B&W�),
through a subsidiary, has received awards in excess of $1 billion
for the manufacture of nuclear components to support U.S. defense
programs, including the manufacture of U.S. Naval nuclear power
systems for submarines and aircraft carriers. The value of these
awards was recorded in McDermott�s Government Operations segment
backlog during the fourth quarter 2008.
This work is part of a previously negotiated and announced set
of contracts that, if fully executed, will be worth more than $2.66
billion in revenue over a 10 year span. As a result of this
increased workload, B&W expects to hire approximately 250 new
salaried and hourly employees throughout three of its
locations.
�We are extremely pleased with these new agreements and the
continued growth of our nuclear business and product line,� said
Brandon C. Bethards, chief executive officer of B&W. �Our team
will continue to focus on providing a complete range of reliable,
cost effective and technologically advanced nuclear products as we
help our clients meet today�s needs, as well as those of the
future.�
McDermott is an engineering and construction company, with
specialty manufacturing and service capabilities, focused on energy
infrastructure. McDermott�s customers are predominantly utilities
and other power generators, major and national oil companies, and
the United States Government. With its global operations, McDermott
operates in over 20 countries with more than 20,000 employees, and
can be found on the internet at www.mcdermott.com.
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott International
Inc. cautions that statements in this press release which are
forward-looking and provide other than historical information
involve risks and uncertainties that may impact McDermott's actual
results of operations. The forward-looking statements in this press
release include, among other things, the value and anticipated
timing of B&W awards, the anticipated series of orders, revenue
recognition and timing, and the expectations on hiring. Although
McDermott's management believes that the expectations reflected in
those forward-looking statements are reasonable, McDermott can give
no assurance that those expectations will prove to have been
correct. Those statements are made based on various underlying
assumptions and are subject to numerous uncertainties and risks,
including without limitation, change orders, modifications in
Government demand and other revisions to contracts or anticipated
orders. If one or more of these risks materialize, or if underlying
assumptions prove incorrect, actual results may vary materially
from those expected. For a more complete discussion of these risk
factors, please see McDermott's annual report for the year ended
December 31, 2007 filed with the Securities and Exchange
Commission.
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