The Shaw Group, a major engineering and construction company, posted a sharp drop in its fiscal second-quarter profit because of a problem project and a non-cash currency translation loss, the company reported today. The results fell short of analysts’ forecasts. For the three months ending Feb. 28, Shaw earned $2.2 million, or 1 cent per share, on revenue of $1.42 billion. During the second quarter a year ago, Shaw earned $68 million, or 72 cents per share, on revenue of $1.62 billion. The latest quarter was hit by cost increases in an undisclosed energy-chemicals project that reduced earnings by 11 cents per share, Shaw said. The company also took a $46.9 million non-cash loss on the exchange rate between the U.S. dollar and the Japanese yen. That exchange is tied to Shaw’s 20% investment in Westinghouse nuclear. Without the translation, Shaw said it earned $35 million, or 40 cents per share, compared with a year-ago profit in the second quarter of $40.1 million, or 47 cents per share. Analysts surveyed by FactSet had forecast per-share earnings of 45 cents and revenue of $1.55 billion. Those forecasts typically do not include such items as currency adjustments and one-time gains.
Shaw said its backlog of unfilled orders totaled $20.6 billion on Feb. 28—up from $19.2 billion in the fiscal first quarter. Shaw also revised its financial guidance for the current fiscal year. Excluding the Westinghouse investment, Shaw said it expects per-share earnings to range from $1.86 to $1.91, up from the previous guidance of $1.70 to $1.80. At the same time, Shaw reduced its projected annual revenue from $6.5 billion to $6.3 billion.