B&W Announces $510 Million in Contracts Supporting U.S. Naval Nuclear Programs
CHARLOTTE, N.C.--(BUSINESS WIRE)-- The Babcock & Wilcox Company (BWC) (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG), was awarded contracts totaling more than $510 million 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 entire amount was appropriated in the fourth quarter of 2012.
Of this work, more than $445 million was issued as options under the $2 billion contract awarded to B&W NOG in 2010 and more than $65 million is issued under a new agreement awarded for fiscal year 2013.
Work will be performed at B&W NOG's Lynchburg, Va., Barberton and Euclid, Ohio and Mt. Vernon, Ind. facilities over an eight-year period, beginning January 2013.
B&W NOG is pleased to continue to provide components and services to the U.S. Naval Reactors Program through these new contracts, said Peyton S. Baker, President of B&W NOG. We are honored to have such an important role in supporting the defense of our nation.
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. The organization employs more than 3,900 people with operations in Virginia, Ohio, Indiana and a subsidiary in Tennessee.
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 12,700 people, in addition to approximately 10,400 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 statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the U.S. Naval Reactors Program contracts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts. If these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's annual report on Form 10-K for the year ended December 31, 2011 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
The Babcock & Wilcox Company
Carla Parks Wooley, APR
Manager, Employee Communications & Public Relations
Vice President, Treasurer and Investor Relations
Source: The Babcock & Wilcox CompanyCopyright Business Wire 2013