This excerpt taken from the MDR 8-K filed May 11, 2009.
Sequential Income Improvement in Each Segment; Near-Record Consolidated Backlog of $10 Billion
HOUSTON--(BUSINESS WIRE)--May 11, 2009--McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) today reported net income of $77.7 million, or $0.33 per diluted share, for the 2009 first quarter, compared to net income of $123.2 million, or $0.54 per diluted share, for the corresponding period in 2008. Weighted average common shares outstanding on a fully diluted basis were approximately 232.6 million and 230.1 million in the quarters ended March 31, 2009 and March 31, 2008, respectively.
McDermott’s revenues in the first quarter of 2009 were $1,493.3 million, an increase of 3.0 percent compared to $1,450.4 million in the corresponding period in 2008. The increase in consolidated revenues was due to a higher level of activity in the Offshore Oil & Gas Construction and Government Operations segments, partially offset by lower revenues in the Power Generation Systems segment.
The Company’s operating income in the 2009 first quarter was $131.2 million, compared to $157.1 million in the 2008 first quarter. A year-over-year increase of $21.8 million in consolidated pension plan expense, which was predominantly a non-cash expense, combined with a $12.7 million reduction in gains on asset sales, were the primary factors in the variance between the two periods.
“Considering the ongoing state of uncertainty in the global economy and that we continue to work through the Middle East pipeline projects in the Offshore Oil & Gas Construction segment, I am quite pleased with the results McDermott produced in the quarter,” said John A. Fees, Chief Executive Officer of McDermott. “The Company’s backlog is near record levels at $10 billion; we see the end to the problematic pipeline projects later this year, and our financial position remains solid. Clearly, the Company has work to do, and near-term challenges still exist, but I am confident McDermott is well-positioned and progressing in this environment.”
At March 31, 2009, McDermott’s consolidated backlog was $10.0 billion, compared to $10.2 billion and $9.8 billion at March 31, 2008 and December 31, 2008, respectively.