class='on' The Shaw Group, Inc.


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At a Glance

HQ: Baton Rouge, LA

NYSE Symbol: SGR

No. of employees: 22,000

Revenues: Over $4 billion

Founded: 1987

Chairman & CEO:
J.M. Bernhard, Jr.

T.A. Barfield, Jr.

Executive VP & CFO: Robert L. Belk

News Release

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The Shaw Group Announces Financial Results for First Quarter Fiscal 2005

The Shaw Group Inc. (NYSE: SGR) today announced financial results for its first quarter fiscal 2005 ended November 30, 2004. Net income from continuing operations for the first quarter of fiscal 2005 was $10.8 million, or $0.17 per diluted share. We also reported a loss from discontinued operations of $0.8 million, or $0.01 per share for the period. In comparison, for the three months ended November 30, 2003, we reported a net loss from continuing operations of $49.6 million, or $1.07 per diluted share, and discontinued operations of $0.1 million, less than $0.01 per diluted share. For the first quarter of fiscal 2005, revenues were $828.1 million compared to $646.9 million in the prior year’s first quarter.

Shaw’s backlog totaled $5.4 billion at November 30, 2004, with approximately $2.4 billion, or 44%, of the backlog is expected to be converted during the next 12 months. Approximately $2.6 billion, or 49%, of the backlog is in the environmental and infrastructure sector, primarily contracts with Federal government agencies and commercial entities; approximately $2.0 billion, or 38%, of the backlog is comprised of projects for fossil-fuel, nuclear and other power generating plants; and approximately $0.7 billion, or 13%, is projects for process industry facilities.

J.M Bernhard, Jr., Chairman and Chief Executive Officer of The Shaw Group Inc., said, “We are pleased with our first quarter net income from continuing operations of $0.17 per diluted share and positive net cash from operations of $10.0 million. This quarter marks a sharp improvement from our last year’s first quarter results, both in revenues and net income and continues the positive trend we started three quarters ago. We are especially excited by the improving markets we see in the energy and process industries including the increase in our maintenance work. Our environmental and infrastructure segment has remained strong and pursued market opportunities aggressively, especially in rapid response services.”

Mr. Bernhard added, “We are well positioned to continue to expand and diversify our business. We have recently replaced our Engineering, Construction and Maintenance Division with two new divisional segments: the Energy and Chemicals Division and a separate Maintenance Division. We believe these organizational refinements will not only improve our overall operational capabilities, but also will enhance our company-wide sales and marketing efforts.”

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the power, process, environmental, infrastructure and emergency response markets. A Fortune 500 Company, The Shaw Group is headquartered in Baton Rouge, Louisiana, and employs approximately 18,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit the Company’s website at

Forward-Looking Statements – 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 website under the heading “Forward-Looking Statements”. 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 website at

                         Revenue by Industry
               (First Quarter Ended November 30, 2004)
Environmental & Infrastructure                $   331.3 million    40%
Power Generation                                  340.1 million    41
Process Industries                                141.9 million    17
Other Industries                                   14.8 million     2
                                              -----------------  -----
       Total                                  $   828.1 million   100%
                         Revenue by Geography
               (First Quarter Ended November 30, 2004)
United States                                 $   699.1 million    85%
Asia/Pacific Rim                                   60.2 million     7
Middle East                                        24.7 million     3
Canada                                             21.8 million     3
Europe                                             12.1 million     1
South America & Mexico                              7.5 million     1
Other                                               2.7 million     -
                                              -----------------  -----
       Total                                  $   828.1 million   100%
                         Backlog by Industry
                      (As of November 30, 2004)
Environmental & Infrastructure                 $2,625.8 million    49%
Power Generation
  Nuclear Power                                 1,049.2 million    20
  Fossil Fuel                                     882.4 million    16
  Other Power                                     117.7 million     2
Process Industries                                681.0 million    12
Other Industries                                   35.4 million     1
                                              -----------------  -----
       Total                                   $5,391.5 million   100%
                         Backlog by Geography
                      (As of November 30, 2004)
Domestic                                       $4,562.8 million    85%
International                                     828.7 million    15
                                              -----------------  -----
       Total                                   $5,391.5 million   100%
               (In thousands, except per share amounts)
                                                    Three Months Ended
                                                    November 30,
                                                        2004     2003
Revenues                                            $828,137 $646,940
Cost of revenues                                     751,749  635,329
  Gross profit                                        76,388   11,611
General and administrative expenses                   48,605   72,287
Operating income (loss)                               27,783  (60,676)
Interest expense                                      (9,739) (10,531)
Interest income                                        1,043      344
Loss on LYONs repurchase                                  --   (1,147)
Foreign currency transaction gains (losses), net      (1,181)  (1,666)
Other income (expense), net                           (1,548)    (920)
                                                     (11,425) (13,920)
Income (loss) before income taxes, minority
 interest, earnings from unconsolidated entities and
 loss from discontinued operations                    16,358  (74,596)
Provision (benefit) for income taxes                   5,730  (24,586)
Income (loss) before minority interest, earnings
 from unconsolidated entities and loss from
 discontinued operations                              10,628  (50,010)
Minority interest, net of taxes                         (144)      --
Earnings from unconsolidated entities, net of taxes      296      559
Income (loss) from continuing operations              10,780  (49,451)
Loss from discontinued operations, net of taxes         (767)    (141)
Net income (loss)                                    $10,013 $(49,592)
Net income (loss) per common share:
    Income (loss) from continuing operations           $0.17   $(1.07)
      Loss from discontinued operations, net of
       taxes                                           (0.01)      --
    Net income (loss)                                  $0.16   $(1.07)
    Income (loss) from continuing operations           $0.17   $(1.07)
      Loss from discontinued operations, net of
       taxes                                           (0.01)      --
    Net income (loss)                                  $0.16   $(1.07)

SOURCE: The Shaw Group Inc.

The Shaw Group Inc., Baton Rouge
Chris D. Sammons

“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

Message from our Chairman and CEO