Shaw Group reports Q1 loss
By Helen Wright07 January 2011
The Shaw Group reported a net loss of US$ 16.4 million in the first quarter of 2011 after sustaining a charge of US$ 63.4 million from an unfavourable US lawsuit.
Chairman, president and chief executive of Shaw Group Jim Bernhard said the company would contest the US ruling, which concerned a dispute over delays and the coordination of work undertaken by subsidiary Stone & Webster for Colorado-based energy company Xcel Energy.
The loss was further compounded by volatility in the currency markets, which resulted in losses for the group of US$ 12.4 million.
However, this was still lower than US$ 102.3 million foreign exchange loss recorded in the first three months of 2010, which was largely responsible for Shaw's net loss of US$ 20.5 million that quarter.
Commenting on future prospects, Mr Bernhard said, "We expect to see an increase in our earnings and backlog in the second half of fiscal year 2011. And with the global announcements in our power segment and the ramp-up of our US nuclear projects, we are expecting strong earnings growth in fiscal year 2012," he said.
Nevertheless, slow bookings resulted in a slight decline in the group's order backlog in the first quarter to US$ 19.1 billion, compared to US$ 22 billion during the same period in 2010.
Revenues for the quarter also slipped to US$ 1.5 billion, down from US$ 1.9 billion in the first quarter of 2010.
The company has maintained its 2011 revenue forecast of US$ 6.5 billion.
The company's latest results cover the first quarter of fiscal year 2011, which ended 30 November, 2010.