B&W Awarded $2.0 Billion Naval Nuclear Reactor Components Contract
CHARLOTTE, N.C., January 13, 2011
The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) has been awarded a contract totaling approximately $2.0 billion, including options. The base portion of the contract, which totals $807 million, will be funded in January and March and included in backlog at the end of 2010. The options are expected to be funded in Government Fiscal Years 2012 and 2013. The contract is for the manufacture of nuclear components to support U.S. defense programs including the manufacture of naval nuclear power systems for submarines and aircraft carriers. The work will be performed over a 10-year period, beginning in January 2011.
"We are pleased with this new agreement and our ongoing support of U.S. defense programs," said Winfred D. Nash, President of B&W NOG. "We look forward to continuing to fulfill our commitment to the nation's security by providing reliable and technologically advanced nuclear products."
B&W NOG offers a complete range of nuclear components and services, including the manufacture of nuclear reactor components for U.S. Naval submarines and aircraft carriers and other nuclear and non-nuclear R&D and component production. B&W NOG employs more than 3,800 people with operations in Virginia, Ohio and Indiana.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,000 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the value and timing of the NOG contract and backlog, to the extent backlog may be viewed as an indicator of future revenues. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delays or other difficulties executing on our contracts in backlog and adverse changes in U.S. Government funding. If one or more of these or other risks materialize, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its registration statement on Form 10, as amended. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
Manager, Employee Communications & Public Relations
The Babcock & Wilcox Company
Michael P. Dickerson
Vice President and Investor Relations Officer
The Babcock & Wilcox Company