BATON ROUGE, La., Jul 10, 2001 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") today announced a 142% increase in earnings
to $17.9 million, or $0.42 per diluted share, for the three months ended May 31,
2001. This compares to earnings of $7.4 million, or $0.23 per diluted share, for
the three months ended May 31, 2000. Third quarter fiscal 2001 sales increased
125% reaching $394 million, compared to $175 million for the third quarter of
fiscal 2000.
Shaw's backlog totaled $3.6 billion at May 31, 2001 with approximately 44%, or
$1.6 billion, to be worked off during the next 12 months. Driven primarily by
strength in the domestic power market, this represents a 313% increase over the
$878 million backlog reported at May 31, 2000, and a 15% increase over Shaw's
backlog at February 28, 2001 of $3.1 billion.
J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer,
stated, "Driven by continued growth opportunities in the domestic power market,
we posted another quarter of solid performance both in our financial results and
operationally. Backlog continues to increase at a steady pace and our capacity
to execute this work has strengthened with the addition of qualified engineers
and project managers to our team. On top of robust proposal activity, we are
well positioned to move into fiscal 2002 and look for continued success in our
future operations."
For the nine months ended May 31, 2001, the Company reported an increase in
earnings before an extraordinary item to $41.9 million, or $1.00 per diluted
share. This compares to earnings before a change in accounting principle of
$20.2 million, or $0.67 per diluted share, for the nine months ended May 31,
2000. Sales for the nine months ended May 31, 2001 increased 131% to $1.2
billion, compared to $499 million in sales for the nine months ended May 31,
2000.
The Shaw Group Inc. is the world's only vertically-integrated provider of
complete piping systems and comprehensive engineering, procurement and
construction services to the power generation industry. Shaw is the largest
supplier of fabricated piping systems in the United States and a leading
supplier worldwide, having installed piping systems in power plants with an
aggregate generation capacity in excess of 200,000 megawatts. While the majority
of Shaw's backlog is attributable to the power generation industry, the Company
also does work in the process industries, including petrochemical, chemical and
refining, and the environmental and infrastructure sector. The Company currently
has offices and operations in North America, South America, Europe, the Middle
East and Asia-Pacific; and has more than 13,000 employees. For additional
information on The Shaw Group, please visit the Company's web site at
www.shawgrp.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained in this press
release that are not historical facts (including without limitation statements
to the effect that The Shaw Group Inc. (the "Company" or "Shaw") or its
management "believes," "expects," "anticipates," "plans," or other similar
expressions) 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 the control of the Company) and assumptions and are subject to
change based upon various factors, including but not limited to the following
risks and uncertainties: changes in the demand for and market acceptance of the
Company's products and services; changes in general economic conditions, and,
specifically, changes in the rate of economic growth in the United States and
other major international economies; the presence of competitors with greater
financial resources and the impact of competitive products, services and
pricing; the cyclical nature of the individual markets in which the Company's
customers operate; changes in investment by the energy, power and environmental
industries; the availability of qualified engineers and other professional staff
needed to execute contracts; the uncertain timing of awards and contracts; cost
overruns on fixed, maximum or unit priced contracts; changes in trade, monetary
and fiscal policies worldwide; currency fluctuations; the effect of the
Company's policies, including but not limited to the amount and rate of growth
of Company expenses; the continued availability to the Company of adequate
funding sources; delays or difficulties in the production, delivery or
installation of products and the provision of services; the ability of the
Company to successfully integrate the operations of Stone & Webster,
Incorporated; the protection and validity of patents and other intellectual
property; and various legal, regulatory and litigation risks. Should one or more
of these risks or uncertainties materialize, or should any of the Company's
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. For a more detailed
discussion of some of the foregoing risks and uncertainties, see the Company's
filings with the Securities and Exchange Commission.
The Shaw Group Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 31, May 31,
---------------------- ----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Income:
Sales $394,154 $175,046 $1,153,194 $498,817
Cost of sales 328,624 147,390 970,078 416,796
---------- ---------- ---------- ----------
Gross profit 65,530 27,656 183,116 82,021
General and
administrative expenses 35,125 15,934 106,654 49,094
---------- ---------- ---------- ----------
Operating income 30,405 11,722 76,462 32,927
Interest expense (2,206) (1,490) (10,007) (4,933)
Other income, net 1,316 211 2,544 584
---------- ---------- ---------- ----------
(890) (1,279) (7,463) (4,349)
---------- ---------- ---------- ----------
Income before income taxes,
earnings (losses) from
unconsolidated entities,
extraordinary item and
cumulative effect of
change in accounting
principle 29,515 10,443 68,999 28,578
Provision for income taxes 11,452 3,407 26,771 9,329
---------- ---------- ---------- ----------
Income before earnings
(losses) from
unconsolidated entities,
extraordinary item
and cumulative effect
of change in accounting
principle 18,063 7,036 42,228 19,249
Earnings (losses) from
unconsolidated entities
(net of taxes) (173) 348 (357) 979
---------- ---------- ---------- ----------
Income before
extraordinary item
and cumulative
effect of change
in accounting principle 17,890 7,384 41,871 20,228
Extraordinary item for
early extinguishment
of debt, net of taxes -- -- (203) --
Cumulative effect on prior
years of change in
accounting for start-up
costs, net of taxes -- -- -- (320)
---------- ---------- ---------- ----------
Net Income $17,890 $7,384 $41,668 $19,908
========== ========== ========== ==========
Basic income per common share:
Number of shares 40,903 30,656 39,832 28,722
Income before
extraordinary item
and cumulative effect
of change in accounting
principle $0.44 $0.24 $1.05 $0.70
Extraordinary item -- -- -- --
Cumulative effect
of change in
accounting principle -- -- -- (0.01)
---------- ---------- ---------- ----------
Net income per common
share $0.44 $0.24 $1.05 $0.69
========== ========== ========== ==========
Diluted income per common
share (includes addback
of $836 of interest on
convertible debt, net of
taxes, for periods ending
May 31, 2001):
Number of shares 44,798 32,302 42,394 30,297
Income before
extraordinary item
and cumulative effect
of change in accounting
principle $0.42 $0.23 $1.00 $0.67
Extraordinary item -- -- -- --
Cumulative effect of
change in
accounting principle -- -- -- (0.01)
---------- ---------- ---------- ----------
Net income per common
share $0.42 $0.23 $1.00 $0.66
========== ========== ========== ==========
SALES AND BACKLOG BY INDUSTRY AND GEOGRAPHY
Sales by Industry
(Third Quarter Ended May 31, 2001)
Power Generation $ 221.1 million 56 %
Process Industries $ 86.4 million 22 %
Environmental & Infrastructure $ 47.7 million 12 %
Other Industries $ 38.9 million 10 %
------------------ ------
Total $ 394.1 million 100 %
Sales by Geography
(Third Quarter Ended May 31, 2001)
United States $ 319.0 million 81 %
Asia/Pacific Rim $ 41.8 million 11 %
Europe $ 20.4 million 5 %
Other $ 5.7 million 1 %
South America $ 5.6 million 1 %
Middle East $ 1.6 million 1 %
------------------ ------
Total $ 394.1 million 100 %
Backlog by Industry
(At May 31, 2001)
Power Generation $ 2,779.1 million 77 %
Process Industries $ 644.5 million 18 %
Environmental & Infrastructure $ 126.0 million 3 %
Other Industries $ 71.6 million 2 %
------------------ ------
Total $ 3,621.2 million 100 %
Backlog by Geography
(At May 31, 2001)
Domestic $ 2,924.5 million 81 %
International $ 696.7 million 19 %
------------------ ------
Total $ 3,621.2 million 100 %
CONTACT: The Shaw Group Inc., Baton Rouge
Christine R. Noel, 225/932-2500