Arsgera
Babcock and Wilcox (New York Stock Exchange: BW) -55.2% in Friday trading to its lowest level in three and a half years after reporting a surprise GAAP third-quarter loss and saying it is weighing strategic alternatives for non-core assets.
Third-quarter net loss widened to $120.6 million, or $1.35 per share, from a loss of $21.5 million, or $0.24 per share, in the prior-year quarter, while revenue rose 13% to $239.4 million, missing analyst expectations.
Babcock & Wilcox (BW) said it is realigning its business in a bid to reposition the company to focus on higher-margin aftermarket businesses and more predictable cash flows to improve the balance sheet and better position it for future growth.
The company said it expects to realize up to $30 million in annualized cost savings, primarily by reducing high overhead expenses associated with pursuing multiple new construction projects.
“In response to current market conditions, including higher interest costs and limited capital expenditures on new construction by our customers, we see a growing global trend to extend the operational life of power and industrial generation facilities. existing,” said CEO Kenneth Young.
