McDermott (MDR) Q2 Revenue Falls Short
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Price: $0.70 --0%
Financial Fact:
Net income attributable to McDermott International, Inc.: 0.06
Today's EPS Names:
SFST, VLTO, CLIR, More
Financial Fact:
Net income attributable to McDermott International, Inc.: 0.06
Today's EPS Names:
SFST, VLTO, CLIR, More
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McDermott International, Inc. (NYSE: MDR) reported Q2 EPS of ($0.63), many not compare to estimate of $0.03. Revenue for the quarter came in at $647.3 million versus the consensus estimate of $757.87 million.
Management Actions
“As a management team, we are taking immediate and decisive actions to correct the weakness we have experienced in our project bidding and execution,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We are driving a more disciplined culture within the Company, and we expect our operating leadership change announced separately today will add focus and urgency to our intentions. Although these problematic projects are expected to require some time to fully work through the system, the initiatives listed below reinforce our commitment to delivering an adequate return on our investors’ capital.”
Atlantic Restructuring
With the goal of substantially consolidating the Atlantic segment, the Company commenced the restructuring of its Atlantic operations in the second quarter 2013. The restructuring includes personnel reductions in Houston and New Orleans as well as a relocation of Morgan City’s fabrication and marine activities to Altamira, Mexico, following the completion of Morgan City’s existing projects in backlog. Restructuring costs are expected to range between $45 million to $60 million and include severance, asset impairment and relocation expenses, and future Morgan City lease costs. Approximately $15.5 million of these restructuring costs were incurred during the 2013 second quarter, and the majority is expected to be recognized over the next four quarters.
For earnings history and earnings-related data on McDermott International, Inc. (MDR) click here.
Management Actions
“As a management team, we are taking immediate and decisive actions to correct the weakness we have experienced in our project bidding and execution,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We are driving a more disciplined culture within the Company, and we expect our operating leadership change announced separately today will add focus and urgency to our intentions. Although these problematic projects are expected to require some time to fully work through the system, the initiatives listed below reinforce our commitment to delivering an adequate return on our investors’ capital.”
Atlantic Restructuring
With the goal of substantially consolidating the Atlantic segment, the Company commenced the restructuring of its Atlantic operations in the second quarter 2013. The restructuring includes personnel reductions in Houston and New Orleans as well as a relocation of Morgan City’s fabrication and marine activities to Altamira, Mexico, following the completion of Morgan City’s existing projects in backlog. Restructuring costs are expected to range between $45 million to $60 million and include severance, asset impairment and relocation expenses, and future Morgan City lease costs. Approximately $15.5 million of these restructuring costs were incurred during the 2013 second quarter, and the majority is expected to be recognized over the next four quarters.
For earnings history and earnings-related data on McDermott International, Inc. (MDR) click here.
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