Aug. 07--Babcock & Wilcox Co.'s second-quarter earnings and revenue dropped significantly from a year ago, and the company dropped its revenue and earnings guidance for the year.
Charlotte-based B&W, which has significant operations in Barberton, reported earning $26.4 million, or 24 cents per share, on revenue of $686 million for the quarter ending June 30. Earnings were down 63 percent from 65 cents per share a year ago, while revenue was down 22.6 percent from the second quarter of 2013.
Revenue from B&W's Barberton Power Generation segment was $327.4 million, down $143.8 million, or 30.5 percent, from $471.2 million a year ago. Revenue fell largely because of a $70.5 million decline in new environmental equipment sales, a $49.5 million decrease in aftermarket services and a $27.5 million decrease in new steam generation systems.
B&W said Thursday it now expects adjusted earnings of $1.70 to $1.85 a share for the year, down from previous guidance of $2 to $2.20 a share. Revenue will be between $2.9 billion and $3 billion instead of $2.9 billion to $3.1 billion.
"2014 is a transitional year for B&W," E. James Ferland, president and chief executive officer, said in a news release. "The decline in Power Generation revenue this quarter and this year is primarily the result of a reduction in coal-related environmental and service projects due to continuing regulatory uncertainty and lower capital spending by our utility customers."
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