Shaw Group posts fiscal 4Q profit

BATON ROUGE, La. -- Technology and engineering firm The Shaw Group Inc. said Friday that it turned a profit in its fiscal fourth quarter. A year ago it took a loss following a series of charges.

In the recent quarter Shaw agreed to be acquired by Chicago Bridge & Iron NV for about $3.2 billion. As part of that deal Shaw sold its energy and chemicals business for $290 million, resulting in a substantial gain during the fourth quarter. A year ago the company reported more than $100 million in one-time charges during its fiscal fourth quarter.

Those charges included a cost increase on a coal-fired power project, higher costs for subcontractors, schedule delays on an energy and chemicals contract, and an unfavorable settlement in its fabrication and manufacturing business.

In the quarter ended Aug. 31, Shaw Group earned $113.2 million, or $1.68 per share. A year ago it took a loss of $90.3 million, or $1.25 per share. Excluding costs related to its Westinghouse business net income was $1.86 per share in the latest quarter. Revenue fell 2 percent to $1.46 billion.

Analysts expected net income of $1.27 cents per share and $1.45 billion in revenue, according to FactSet.

In October Shaw exercised its option to sell the company's stake in Westinghouse back to Toshiba. That sale is expected to be completed in January. The sale of Shaw Group to CB&I is expected to close during the first quarter of 2013.

For the full fiscal year, Shaw made $198.9 million, or $2.90 per share. Excluding Westinghouse, net income was $2.70 per share. In fiscal 2011 it lost $175 million, or $2.18 per share. Annual revenue rose 1 percent to $6 billion. Wall Street expected $2.18 per share on $6 billion in revenue.

In fiscal 2013 Shaw expects net income of $1.70 to $1.90 per share, excluding Westinghouse, and $5 billion to $5.5 billion in revenue.

Analysts forecast $2.60 per share and $6.14 billion in revenue.

Shaw Group shares fell 62 cents to $43.74 in midday trading.