McDermott Int'l sees 4Q sales in line with Street

HOUSTON - McDermott International Inc., which provides construction and engineering services for oil and gas companies, on Thursday guided for fourth-quarter sales in line with Wall Street's expectations, and said analysts' 2009 forecast is "reasonable."

For the quarter, the company expects net income of $36 million to $43 million, or about 16 cents to 19 cents per share. That includes one-time charges of $57 million.

Revenue is seen ranging between $1.6 billion and $1.67 billion, compared with the analysts' average forecast of $1.65 billion, according to a Thomson Reuters poll.

"Including these expectations for the fourth quarter, fiscal 2008 should prove to be the second best year for consolidated net income in company history, behind 2007," said Chief Executive Officer John A. Fees, in a statement.

The company said it expects its backlog for the end of 2008 to be about $9.8 billion.

Looking forward, McDermott said that though wide, it thinks analysts' current 2009 earnings per share forecast of $1.35 to $2.14 is "reasonable," based on the company's current outlook for business conditions this year.

Final results are due after the closing bell on March 2.

Shares closed earlier up 51 cents, or nearly 5 percent, at $11. The stock is still well off its 52-week high of $67.14 set last June at the peak of oil prices.

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