This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

McDermott International's CEO Discusses Q4 2011 Results - Earnings Call Transcript

And please note that except to the extent required by applicable law, McDermott undertakes no obligation to update any forward-looking statement. Let me now turn the call over to Steve Johnson, McDermott's Chairman, President and CEO, for his remarks on our fourth quarter results, the full year and his views on the business and operational environment.

Stephen M. Johnson

Thanks, Jay, and good morning, everyone. To state the obvious, our fourth quarter was disappointing. The Atlantic projects in Mexico and Brazil, that also impacted our third quarter, offset otherwise good performance on the rest of our project portfolio. My objective this morning is to provide an overview of the quarter, the challenges we faced on the lost projects and probably more importantly, our outlook for the coming year. There's an important positive to this story. We don't anticipate full year 2012 to look like the second half of 2011. With the loss projects, we have one advantage with the fourth quarter results and the later reporting cycle, in that we are able to reflect the actual experience we had on these projects during January and February of 2012 into yesterday's reported financial statements.

Also, in our press release yesterday, we indicated that at this time, we view the current range of analyst estimates as reasonable book-ends for your expectations of McDermott this year. Our plan is right in that range and we believe it's achievable. For your modeling, we expect the first quarter to be the low point of 2012, with the improvement to come in subsequent periods. But before getting too far ahead, let me return my comments to a review of yesterday's news. I'll let Perry cover the financials and the details thereof shortly. But as pointed out, we had a number of items going both ways in the fourth quarter.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs