BATON ROUGE, La., Jul 11, 2002 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") today announced a 49% increase in earnings
to $26.7 million, or $0.61 per diluted share, for the three months ended May 31,
2002. This compares to earnings of $17.9 million, or $0.42 per diluted share,
for the three months ended May 31, 2001. Third quarter fiscal 2002 sales
increased 129% reaching $902.6 million, compared to $394.2 million for the third
quarter of fiscal 2001.
Shaw's backlog totaled $6.1 billion at May 31, 2002 with approximately 53%, or
$3.2 billion, to be worked off during the next 12 months. This represents a 68%
increase over the $3.6 billion backlog reported at May 31, 2001, and a 36%
increase over Shaw's backlog at February 28, 2002 of $4.5 billion.
"We are very pleased to report solid financial results on a consistent basis,"
stated J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive
Officer. "Our strong balance sheet, project execution skills and ongoing
strategy to diversify our portfolio of work have all played a key role in
allowing Shaw to maintain its track record of growth. Additionally, the
integration of our newly acquired assets in the environmental & infrastructure
sector is progressing better than expected. We look for this division to be a
major contributor to our success going forward."
For the nine months ended May 31, 2002, the Company reported an increase in
earnings to $67.0 million, or $1.56 per diluted share. This compares to earnings
of $41.7 million, or $1.00 per diluted share, for the nine months ended May 31,
2001. Sales for the nine months ended May 31, 2002 increased 67% to $1.9
billion, compared to $1.2 billion in sales for the nine months ended May 31,
2001.
The Shaw Group Inc. is the world's only vertically-integrated provider of
comprehensive engineering, procurement, pipe fabrication, construction and
maintenance services to the power, process and environmental & infrastructure
sectors. Shaw is headquartered in Baton Rouge, Louisiana, and currently has
offices and operations in North America, South America, Europe, the Middle East
and Asia-Pacific. Shaw employs more than 20,000 people annually. Additional
information on The Shaw Group is available at www.shawgrp.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained herein that are
not historical facts (including without limitation statements to the effect that
the Company or its management "believes," "expects," "anticipates," "plans," or
other similar expressions) and statements related to revenues, earnings,
backlog, or other financial information or results are forward-looking
statements based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such
risks or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those projected in
the forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including its Form 10-K and Form 10-Q, reports and on the Company's web-site
under the heading "Forward Looking Statement". These documents are also
available from the Securities and Exchange Commission or from the Investor
Relations department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our web site
at www.shawgrp.com.
The Shaw Group Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 31, May 31,
-------------------- ----------------------
2002 2001 2002 2001
--------- --------- ---------- ----------
Income:
Sales $ 902,640 $ 394,154 $1,922,476 $1,153,194
Cost of sales 816,679 328,624 1,706,063 970,078
--------- --------- ---------- ----------
Gross profit 85,961 65,530 216,413 183,116
General and
administrative expenses 42,400 30,925 106,334 94,557
Goodwill amortization -- 4,200 -- 12,097
--------- --------- ---------- ----------
Total general and
administrative
expenses 42,400 35,125 106,334 106,654
Operating income 43,561 30,405 110,079 76,462
Interest expense (5,872) (2,206) (17,108) (10,007)
Interest income 3,972 2,591 9,393 3,649
Other income, net (661) (1,275) (217) (1,435)
--------- --------- ---------- ----------
(2,561) (890) (7,932) (7,793)
--------- --------- ---------- ----------
Income before income
taxes and earnings
(losses) from
unconsolidated entities 41,000 29,515 102,147 68,669
Provision for income
taxes 14,754 11,452 36,773 26,644
--------- --------- ---------- ----------
Income before earnings
(losses) from
unconsolidated entities 26,246 18,063 65,374 42,025
Earnings (losses) from
unconsolidated entities
(net of taxes) 484 (173) 1,648 (357)
--------- --------- ---------- ----------
Net Income $ 26,730 $ 17,890 $ 67,022 $ 41,668
========= ========= ========== ==========
Basic income per common
share:
Net income available to
common shareholders $ 26,730 $ 17,890 $ 67,022 $ 41,668
========= ========= ========== ==========
Number of shares 40,694 40,903 40,638 39,832
========= ========= ========== ==========
Net income per common
share $ 0.66 $ 0.44 $ 1.65 $ 1.05
========= ========= ========== ==========
Diluted income per common
share:
Net income available
to common
shareholders $ 26,730 $ 17,890 $ 67,022 $ 41,668
Interest on
convertible debt,
net of taxes 2,661 836 7,944 836
--------- --------- ---------- ----------
Net income for diluted
computation $ 29,391 $ 18,726 $ 74,966 $ 42,504
========= ========= ========== ==========
Number of shares 48,257 44,798 48,088 42,394
========= ========= ========== ==========
Diluted income per
common share $ 0.61 $ 0.42 $ 1.56 $ 1.00
========= ========= ========== ==========
SALES AND BACKLOG BY INDUSTRY AND GEOGRAPHY
Sales by Industry
(Third Quarter Ended May 31, 2002)
Power Generation $ 672.2 million 75%
Environmental & Infrastructure $ 117.3 million 13%
Other Industries $ 56.8 million 6%
Process Industries $ 56.3 million 6%
------------------ -------
Total $ 902.6 million 100%
Sales by Geography
(Third Quarter Ended May 31, 2002)
United States $ 805.9 million 89%
Asia/Pacific Rim $ 37.9 million 4%
Europe $ 24.8 million 3%
Other North American $ 21.2 million 2%
South America $ 8.0 million 1%
Other $ 3.1 million 1%
Middle East $ 1.7 million 0%
------------------- -------
Total $ 902.6 million 100%
Backlog by Industry
(At May 31, 2002)
Power Generation $2,913.2 million 48%
Environmental & Infrastructure $2,552.4 million 42%
Process Industries $ 505.9 million 8%
Other Industries $ 102.9 million 2%
----------------- -------
Total $6,074.4 million 100%
Backlog by Geography
(At May 31, 2002)
Domestic $5,430.2 million 89%
International $ 644.2 million 11%
----------------- ------
Total $6,074.4 million 100%
CONTACT: The Shaw Group Inc., Baton Rouge
Christine N. Mollere, 225/932-2500
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