B&W Announces $366 Million Contract for Naval Reactors Materials Procurement
The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG), has received a contract from the U.S. Naval Reactors Program worth approximately $366 million.
The award is for the procurement of material to be used in the assembly of nuclear propulsion components at B&W NOG's Lynchburg, Va. facility. At this time, $75 million has been released to B&W, with the remaining amount expected to be funded over the next six fiscal years (2014-2019).
"B&W is pleased to continue serving the U.S. Naval Reactors Program in support of producing quality products while reducing costs through this new contract," said Peyton S. Baker, President of B&W NOG. "Our Company's role in supporting the U.S. Navy's nuclear fleet's mission is a source of immense pride for our workforce."
B&W NOG offers a complete range of nuclear components and services, including the manufacture of nuclear reactor components for U.S. Navy submarines and aircraft carriers, as well as other nuclear and non-nuclear research and development and component production. The organization employs more than 3,900 people with operations in Virginia, Ohio, Indiana and a subsidiary in Tennessee.
About B&W
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 14,000 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 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 contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and adverse changes in U.S. Government appropriations. If one or more of 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 filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012. 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.
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