McDermott International Inc (NYSE:MDR) reported downbeat results for its second quarter and issued FY19 sales guidance below analyst estimates.
The Houston-based McDermott reported revenues of $2.1 billion, a net loss of $(146) million, or $(0.80) per diluted share, and an operating loss of $(61) million for the second quarter of 2019.
Excluding a $101-million non-cash loss on the sale of its Alloy Piping Products (APP) business, as well as restructuring, integration and transaction costs of $31 million, as outlined in an accompanying table,
McDermott's adjusted net loss for the second quarter of 2019 was $(14) million, or $($0.07) per diluted share, and its adjusted operating income was $71 million.
CEO David Dickson said: "Although the company reported mixed results for the second quarter of 2019, we are encouraged by the record-setting level of backlog and new awards.
“We are also pleased with the visibility we have into expected 2020 revenues, of which $7.4 billion was already in backlog as of the end of the second quarter of 2019. This is well above the $4.2 billion of 2019 revenues we had in backlog this time last year.”
Full-year guidance also looked somewhat dour, based on a revenue projection of minus $9.5 billion, an expected operating loss of $220 million, and an operating margin around minus 2.3%.
Shares began Tuesday down $4.05, or 40.1% to $4.05, plumbing a new 52-week low.
