Shaw Group 2Q profit surges on accounting gain
Baton Rouge-based engineering and construction firm Shaw Group Inc. reports today that its fiscal second-quarter profit surged, largely as a result of a big accounting gain at its Westinghouse unit. It also says it's considering offers for its energy and chemicals division. CEO J. M. Bernhard Jr. says its results were boosted by strong performance in the company's plant services unit, along with its environmental and infrastructure unit and its fabrication and manufacturing segments. For the three months that ended Feb. 29, the company reported net income of $52.5 million, or 78 cents per share, up from $1.2 million, or 1 cent per share, a year earlier. Shaw's subsidiary Nuclear Energy Holdings bought a 20% stake in the Westinghouse Group for $1.08 billion in 2006, and it financed the investment in part by issuing yen-denominated bonds. In the latest quarter, Shaw booked a pretax accounting gain of $51.5 million for its Westinghouse segment because of movement in exchange rates between the U.S. dollar and the Japanese yen. A year ago, the Westinghouse segment reported a pretax accounting loss of $46.9 million due to foreign exchange rates. Excluding results from Westinghouse, the company reports it earned 46 cents per share. That matched what analysts had been expecting, according to a survey by FactSet. Revenue edged up to $1.47 billion from $1.42 billion a year ago. The company says 2012 revenue should be between $5.5 billion and $6 billion during the year, which is roughly in line with the $5.97 billion analysts expect.
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