BATON ROUGE, La.–(BUSINESS WIRE)–July 6, 2005–The Shaw Group
Inc. (NYSE: SGR) announced today that it will restate its fiscal year
ended August 31, 2004 financial statements and its six months ended
February 28, 2005 financial statements to correct an accounting error.
Shaw’s previously reported fiscal year ended August 31, 2004 operating
income will be restated to increase operating income by $3.1 million
(a $2.0 million decrease in net loss, after taxes or $0.03 per diluted
share). The restated operating income for the fiscal year ended August
31, 2004 is $7.1 million. The restated net loss for the same period is
$29.0 million or $0.50 per diluted share.
Shaw’s previously reported six months ended February 28, 2005
operating income will be restated to increase operating income by $0.9
million (a $0.6 million increase in net income, after taxes or $0.01
per diluted share). The restated operating income for the six months
ended February 28, 2005 is $49.7 million. The restated net income for
the same period is $20.3 million or $0.31 per diluted share.
The accounting error was an overstatement of operating expenses
related to employee benefit costs for Shaw Energy Delivery Services, a
business unit acquired by Shaw in December 2003.
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 energy,
chemical, environmental, infrastructure and emergency response
markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion
in annual revenues, Shaw employs approximately 20,000 people at its
offices and operations in North America, South America, Europe, the
Middle East and the Asia-Pacific region. The Company was recently
named to Fortune magazine’s annual list of “America’s Most Admired
Companies” for the second consecutive year. For further information,
please visit Shaw’s website 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 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 web site at www.shawgrp.com..
CONTACT: The Shaw Group Inc.
Chris D. Sammons, 225-932-2546
SOURCE: The Shaw Group Inc.