THE SHAW GROUP

HomeWho We AreWhat We DoInvestor RelationsCareers

News Release

Printer Friendly VersionView printer-friendly version
<<Back
The Shaw Group Announces Financial Results for Fourth Quarter and Fiscal Year 2002
BATON ROUGE, La., Oct 14, 2002 (BUSINESS WIRE) -- The Shaw Group Inc. (NYSE:SGR) ("Shaw" or "the Company") today announced a 62% increase in earnings to $31.3 million, or $0.70 per diluted share, for the three months ended August 31, 2002. This compares to earnings of $19.3 million, or $0.45 per diluted share, for the three months ended August 31, 2001. Fourth quarter fiscal 2002 revenue increased 224% reaching $1.2 billion, compared to $385.7 million for the fourth quarter of fiscal 2001.

For the year ended August 31, 2002, the Company reported a 61% increase in earnings to $98.4 million, or $2.26 per diluted share. This compares to earnings of $61.0 million, or $1.46 per diluted share for the year ended August 31, 2001. Revenue for the year ended August 31, 2002 increased 106% to $3.2 billion, compared to $1.5 billion in revenue for the year ended August 31, 2001.

Shaw's backlog totaled $5.6 billion at August 31, 2002, representing a 25% increase over the $4.5 billion backlog reported at August 31, 2001. Approximately 47%, or $2.6 billion, is expected to be worked off during the next 12 months. Ninety-one percent of Shaw's backlog is for projects in the United States.

"Our strong balance sheet and project execution skills have allowed us to produce record results for another fiscal year," stated J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer. "Shaw's diversified portfolio, including our process and environmental & infrastructure operations, as well as our nuclear and other power services, provides a recurring revenue base and level of stability to our operations going forward."

Shaw has completed the repurchase of approximately $100 million of its common stock, authorized by its Board of Directors on September 14, 2001, totaling approximately 5.3 million shares. This includes approximately 3.2 million shares purchased in the first of quarter of fiscal 2003, 1.0 million shares in the fourth quarter of fiscal 2002 and 1.1 million shares purchased in previous quarters.

To reflect the downturn in the domestic power generation market, including the potential loss of future profits in connection with the LSP-Pike Energy LLC ("Pike") project, and the PG&E; National Energy Group ("NEG"), a subsidiary of PG&E; Corporation (NYSE: PCG), Harquahala and Covert projects, Shaw is revising its earnings guidance for fiscal year 2003 to a range of $1.92 to $2.08 per diluted share, from its previous earnings guidance in the range of $2.72 to $3.00 per diluted share. Accordingly, the Company expects revenue to be in the range of $2.8 to $2.9 billion for its fiscal year 2003. Previous revenue guidance for fiscal year 2003 was in the range of $3.3 billion to $3.8 billion.

On a quarterly basis, diluted earnings per share for fiscal 2003 are expected to be in the range of $0.40 to $0.44 for the first quarter, $0.34 to $0.38 for the second quarter, $0.51 to $0.55 for the third quarter and $0.67 to $0.71 for the fourth quarter. This guidance assumes approximately 45 million dilutive shares outstanding. Quarterly revenue is expected to be in the range of $720 to $760 million for the first quarter, $620 to $660 million for the second quarter, $650 to $690 million for the third quarter and $760 to $800 million for the fourth quarter.

While the Pike project was removed from Shaw's backlog during the fourth quarter; revenues remaining in backlog from the NEG projects as of August 31, 2002 of approximately $372 million, will be taken out of backlog when it is determined that the projects will not move forward to completion.

Mr. Bernhard stated, "Although we recognize that varying challenges surround the economy and our business at present forcing us to conservatively lower expectations for fiscal 2003, we are confident that our proven track record, and ability to quickly adapt to market changes, will allow our Company to continue to prosper in the years ahead."

On August 5, 2002, Shaw announced that it had entered into an agreement with Pike and its parent NRG Energy, Inc. ("NRG"), a subsidiary of Xcel Energy, Inc. (NYSE: XEL), to acquire substantially all of the assets of the Pike project in exchange for forgiveness of sums owed to the Company, and the payment of $43 million by the Company to NRG. The Board of NRG and its lenders have not given final approval to the agreement. Although the agreement has expired by its terms, the Company remains in talks with NRG and its lenders.

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    Twelve Months Ended
                               August 31,             August 31,
                         --------------------  ----------------------
                            2002       2001       2002        2001
                         ----------  --------  ----------  ----------
Income:
   Sales                 $1,248,220  $385,738  $3,170,696  $1,538,932
   Cost of sales          1,137,007   322,238   2,843,070   1,292,316
                         ----------  --------  ----------  ----------
     Gross profit           111,213    63,500     327,626     246,616
General and
 administrative
 expenses                    54,914    28,044     161,248     122,601
Goodwill amortization            --     4,962          --      17,059
                         ----------  --------  ----------  ----------
   Total general and
    administrative
    expenses                 54,914    33,006     161,248     139,660
Operating income             56,299    30,494     166,378     106,956
Interest expense             (5,920)   (5,673)    (23,028)    (15,680)
Interest income               2,125     5,097      11,518       8,746
Other income, net            (3,616)      958      (3,833)       (477)
                         ----------  --------  ----------  ----------
                             (7,411)      382     (15,343)     (7,411)
                         ----------  --------  ----------  ----------
Income before income
 taxes and earnings
 (losses) from
 unconsolidated
 entities                    48,888    30,876     151,035      99,545
Provision for income
 taxes                       17,575    11,588      54,348      38,232
                         ----------  --------  ----------  ----------
Income before earnings
 (losses) from
 unconsolidated entities     31,313    19,288      96,687      61,313
Earnings (losses) from
 unconsolidated entities
 (net of taxes)                  32        41       1,680        (316)
                         ----------  --------  ----------  ----------
Net Income               $   31,345  $ 19,329  $   98,367  $   60,997
                         ==========  ========  ==========  ==========
Basic income per common share:
   Net income available
    to common
    shareholders         $   31,345  $ 19,329  $   98,367  $   60,997
                         ==========  ========  ==========  ==========
   Number of shares          41,415    40,990      40,834      40,127
                         ==========  ========  ==========  ==========
   Net income per
    common share         $     0.76  $   0.47  $     2.41  $     1.52
                         ==========  ========  ==========  ==========
Diluted income per common share:
   Net income available
    to common
    shareholders         $   31,345  $ 19,329  $   98,367  $   60,997
   Interest on
    convertible debt,
    net of taxes              2,690     2,507      10,697
                         ----------  --------  ----------  ----------
   Net income for
    diluted
    computation          $   34,035  $ 21,836  $  109,064  $   60,997
                         ==========  ========  ==========  ==========
   Number of shares          48,683    48,872      48,238      41,828
                         ==========  ========  ==========  ==========
   Diluted income per
    common share         $     0.70  $   0.45  $     2.26  $     1.46
                         ==========  ========  ==========  ==========
             REVENUE AND BACKLOG BY INDUSTRY AND GEOGRAPHY
                          Revenue by Industry
                (Fourth Quarter Ended August 31, 2002)
Power Generation                        $   831.1 million      67 %
Environmental & Infrastructure          $   235.5 million      19 %
Process Industries                      $   101.5 million       8 %
Other Industries                        $    80.1 million       6 %
                                        -----------------     -----
Total                                   $ 1,248.2 million     100 %
                         Revenue by Geography
                (Fourth Quarter Ended August 31, 2002)
United States                           $ 1,131.5 million      91 %
Other North American                    $    37.6 million       3 %
Asia/Pacific Rim                        $    37.0 million       3 %
Europe                                  $    27.7 million       2 %
South America                           $     7.1 million       1 %
Other                                   $     4.2 million       0 %
Middle East                             $     3.1 million       0 %
                                        -----------------     -----
Total                                   $ 1,248.2 million     100 %
                          Revenue by Industry
                     (Year Ended August 31, 2002)
Power Generation                        $ 2,246.2 million      71 %
Environmental & Infrastructure          $   425.3 million      13 %
Process Industries                      $   282.4 million       9 %
Other Industries                        $   216.8 million       7 %
                                        -----------------     -----
Total                                   $ 3,170.7 million     100 %
                         Revenue by Geography
                     (Year Ended August 31, 2002)
United States                           $ 2,756.3 million      87 %
Asia/Pacific Rim                        $   148.3 million       5 %
Other North American                    $   108.2 million       3 %
Europe                                  $   103.7 million       3 %
South America                           $    27.8 million       1 %
Other                                   $    15.6 million       1 %
Middle East                             $    10.8 million       0 %
                                        -----------------     -----
Total                                   $ 3,170.7 million     100 %
                          Backlog by Industry
                         (At August 31, 2002)
Power Generation
  Nuclear Power                         $ 1,189.1 million      21 %
  Fossil Fuel EPC                       $   998.9 million      18 %
  Other Power                           $   459.5 million       8 %
Environmental & Infrastructure          $ 2,360.3 million      42 %
Process Industries                      $   495.4 million       9 %
Other Industries                        $   101.5 million       2 %
                                        -----------------     -----
Total                                   $ 5,604.7 million     100 %
                         Backlog by Geography
                         (At August 31, 2002)
Domestic                                $ 5,080.9 million      91 %
International                           $   523.8 million       9 %
                                        -----------------     -----
Total                                   $ 5,604.7 million     100 %
The Shaw Group Inc.

CONTACT:          The Shaw Group Inc., Baton Rouge
                  Christine N. Mollere, 225/932-2500
                  www.shawgrp.com
(c) 2002 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SHAW GROUP INC's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.


Additional Information

Calendar of Events

Presentations

Archived News Releases


IR Services

Receive E-mail Alerts

Request Information

Contacts

Job Search Photo