McDermott Undone by Power Segment
Engineering and construction company
McDermott International
(MDR) - Get McDermott International, Inc. Report
posted a 37% drop in first-quarter profit, hurt by its power generation segment.
During the quarter, income fell to $77.7 million, or 33 cents a share, compared with $123.2 million, or 54 cents, last year. Analysts expected earnings of 31 cents.
Revenue rose 3% to $1.49 billion from $1.45 billion last year, due to a higher level of activity in the Offshore Oil & Gas Construction and Government Operations segments, which partially offset lower revenues in the Power Generation Systems segment.
"The Company's backlog is near record levels at $10 billion; we see the end to the problematic pipeline projects later this year, and our financial position remains solid," CEO John A. Fees said in a statement.
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Dan Fitzpatrick said on "3 Stocks I Saw on TV" that
McDermott is in an uptrend with few screaming ups or downs.
Last week, rival
Global Industries
(GLBL)
also saw a decline in quarterly profit, citing continued difficulty in the industry.
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