WASHINGTON (dpa-AFX) - The Babcock & Wilcox Company (BWC) reported third-quarter net income to company of $61.2 million or $0.57 per share, compared to $60.5 million or $0.54 per share, prior year. Adjusted earnings per share was $0.53, for the quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $0.45 for the quarter. Analysts' estimates typically exclude special items.
Revenue decreased to $737.90 million from $774.83 million last year. Analysts expected revenue of $752.85 million for the quarter.
The company raised the lower end of the range for adjusted earnings per share for the full year 2014 to $1.75 to $1.85, from the previous range of $1.70 to $1.85. The company expects 2014 consolidated revenues to be approximately $2.9 billion, compared to the previous range of $2.9 billion to $3.0 billion. Analysts expect the company to report full year earnings per share of $1.75 on revenue of $2.90 billion.
The Babcock & Wilcox Company's Board has unanimously approved a plan for the tax-free spin-off of the company's Power Generation business to shareholders. The spin-off is expected to create two independent, publicly traded companies: Babcock & Wilcox and BWX Technologies. The spin-off and the pro rata distribution of shares of the new Babcock & Wilcox to B&W shareholders are expected to be completed by mid-summer 2015.
Babcock & Wilcox will comprise the Power Generation business. James Ferland, currently President and CEO of B&W, will become Chairman and CEO of the new Babcock & Wilcox.
BWX Technologies will comprise the Government & Nuclear Operations business and will consist of the Nuclear Operations, Technical Services, Nuclear Energy and mPower businesses. John Fees, currently Chairman of B&W, will become Executive Chairman of BWX Technologies. Peyton Baker, currently President of the company's Government & Nuclear Operations Group, will become President and CEO of BWX Technologies.
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