Shaw Group posts first-quarter loss

The Shaw Group posted a $16.4 million first-quarter loss, due to a jury verdict and a foreign exchange translation loss. The Baton Rouge–based construction and engineering firm announced the results of the quarter, which ended Nov. 30. The loss breaks down to 19 cents per share, better than the $20.5 million, or 25 cents a share, Shaw lost in the first quarter of fiscal 2010. Revenue was down from $1.9 billion to $1.5 billion, and the backlog of projects was down from $22 billion to $19.1 billion. Shaw took $63.4 million pre-tax loss due to a split jury verdict related to Xcel Energy’s Comanche project. The company also lost $12.4 million on a foreign exchange currency change. “The charge on the Comanche project, coupled with continued volatility from foreign exchange rates, had a significant, negative impact on our earnings this quarter,” says Jim Bernhard Jr., chairman, president and chief executive officer of Shaw. “However, we expect to see an increase in our earnings and backlog in the second half of fiscal year 2011. And with the global announcements in our power segment and the ramp-up of our U.S. nuclear projects, we are expecting strong earnings growth in fiscal year 2012.” For fiscal 2011, Shaw is forecasting about $6.5 billion in revenue and diluted earnings per share of between $1.70 and $1.80, excluding Westinghouse.