This Day On The Street
Continue to site
ADVERTISEMENT
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 Q1 2012 Results - Earnings Call Transcript

In addition, some of our comments this morning will include forward-looking statements and estimates. These forward-looking comments are subject to various risks and uncertainties, and they reflect management's views as of May 10, 2012. Please refer to our filings with the Securities and Exchange Commission, which are available on our website, including our Form 10-K for the year ended December 31, 2011, and yesterday's 10-Q, which will provide a discussion of factors that may cause our actual results to differ from management's projections, forecasts, estimates and expectations. 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 for his opening remarks.

Stephen M. Johnson

Thanks, Jay, and good morning, everyone. In my view, McDermott had a very good start to 2012 with this quarter's results. Two months ago, we thought our first quarter results would be softer, but clearly, the operations and our project portfolio exceeded our prior expectations. Some of this outperformance was timing-related, some projects showed good improvement and we had cost savings, and importantly, we didn't have a large one-off project charge or charges that affected the last 2 sequential quarters. Adding to our solid financial results, the company also had its best quarter of bookings in its history at over $2.6 billion, which grew our backlog to $5.8 billion, also a high watermark in the history of the company.

Before I get too far into our prepared comments, let me give a brief outline of our intended discussion this morning since we're likely to go a little bit longer than usual. I'll provide a few more comments on the quarter before handing off to Perry to cover our financials in detail and supply some other metrics, then I'll return for my view of McDermott's strategy, both what we've been implementing as well as what we expect to be doing going forward. My objective is to be as transparent and fulsome with respect to growth plans and strategic direction as is reasonable given this broad audience. Following our prepared remarks, we'll open the call to questions. So let's get started.

2 of 4

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs