Babcock & Wilcox Co.’s Power Generation Group business has been hurt by slow electricity demand and low natural gas prices, the company’s top executive said Thursday.
B&W’s Power Generation Group, which has a sizable campus in Barberton, had net segment income of $155.8 million on revenue of $1.77 billion for 2013, B&W said in reporting fourth-quarter and full-year financials.
A year ago, Power Generation Group had segment income of $183.4 million on revenue of $1.79 billion. The division focuses largely on coal-fired power plant technology. Other divisions are Nuclear Operations, Technical Services, Nuclear Energy, and mPower, the small modular nuclear reactor program.
“We’re aggressively working in a number of programs to drive cost out of the PGG business. We hope to improve our competitiveness and improve margins despite challenging market conditions,” E. James Ferland, B&W president and chief executive officer, said in a conference call Thursday with industry analysts.
“Our Power Generation business has been challenged by slow electricity demand growth, low natural gas prices and an uncertain regulatory environment in the U.S.,” Ferland said. “Bookings in the Power Generation segment remain slow and below prior year levels. As a result, we expect the revenue to be down in 2014 with a modest recovery in 2015.”
B&W had net income of $346 million, or $3.07 per share, on revenue of nearly $3.3 billion for 2013. Fourth-quarter net income was $166 million, or $1.48 per share, on revenue of $802.8 million.
Jim Mackinnon can be reached at 330-996-3544 or firstname.lastname@example.org.