McDermott International (MDR) - Get Report , which on Wednesday lost almost two-thirds of its market value, has brought in a turnaround consultant in an effort to improve its cash flow and bottom line, a report said.
People familiar with the matter told the Wall Street Journal that the Houston engineering and construction firm has engaged Alix Partners of New York.
McDermott said in a Wednesday statement that it "routinely hires external advisers to evaluate opportunities for the company," and that it "is taking positive and proactive measures to improve its capital structure and the long-term health of its balance sheet."
McDermott shares closed 63% lower at $2.16. The low for the day was $1.44, down 76%.
In July, McDermott reported a second-quarter net loss of 80 cents a share, compared with a year-earlier profit of 33 cents each. Shares outstanding rose 26% to 182 million. Revenue rose 23% to $2.14 billion.
For the full year, the company updated its outlook to show a net loss of $310 million on revenue of $9.5 billion. Its previous outlook had been a profit of about $170 million on revenue of $10 billion.
The change in the guidance reflected the weaker-than-expected second-quarter results; reduced revenue and higher expense due to "slippage in certain new awards" and customer changes to the schedule on several projects; changed assumptions about certain legacy projects, and a move, to 2020 from Q4 2019, of incentives on an LNG project, the company said.