Skip to main content

Shaw Group


agreed to take a 20% stake in the group that's acquiring nuclear power giant Westinghouse from the British government.

Shaw said it will pay $1.08 billion, which it will raise in a placement of yen-denominated limited-recourse bonds. The news comes as Toshiba plans a $5.4 billion takeover of Westinghouse that will leave it with 77% of the company.

Closing is expected this month.

TheStreet Recommends

The Baton Rouge, La., company also said fourth-quarter earnings will reflect a charge related to additional cost overruns on a domestic clean fuels project.

As a result of the charge, tied to escalation in costs due to the impacts of Hurricanes Katrina and Rita, as well as delays and costs attributable to others, Shaw expects to make 15 to 18 cents a share from continuing operations for the quarter ended Aug. 31.

Analysts surveyed by Thomson Financial were looking for a 28-cent profit. Shaw estimates that its operating cash flow for the fourth quarter will be approximately $150 million.

The company also said it expects to make $1.30 to $1.60 a share for the year ending next August, with operating cash flow of $300 million to $350 million.

Shaw said it expects to report a record backlog, exceeding $9 billion as of Aug. 31.