The Babcock & Wilcox Company
) has won U.S. Naval Reactors Program contract to render
procurement and assembling services. Babcock & Wilcox will
execute the deal, worth $366 million, through its affiliate
Babcock & Wilcox Nuclear Operations Group Inc.
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Per the deal, the company will procure the materials for the
assembly of nuclear propulsion components at its Lynchburg, Va.
Facility. Babcock & Wilcox has received $75 million as part
payment and the remaining sum is likely to be funded in the next
six fiscal years (2014-2019).
Earlier in February, Babcock & Wilcox also received two
contracts worth $36 million, from U.S. Naval Reactors Program to
render procurement and assembling services.
Headquartered in Charlotte, N.C., Babcock & Wilcox is engaged
in providing clean energy technology and services for the
nuclear, fossil and renewable power markets worldwide. The
company - which was spun off as an independent and publicly
traded entity from energy-focused engineering and construction
) in Aug 2010 - operates in four business units: Power
Generation, Nuclear Operations, Technical Services and Nuclear
Earlier this month, Babcock & Wilcox declared
weaker-than-expected first quarter 2013 results due to lower
operating income in some of its segments. Adjusted earnings per
share came in at 46 cents, below the Zacks Consensus Estimate of
Babcock & Wilcox currently carries a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
However, certain other engineering firms in the energy sector
Tri-Tech Holding Inc.
) are expected to outperform the equity market in the next one to
three months. Both the stocks currently hold a Zacks Rank #1