The Babcock & Wilcox Company (B&W) is a U.S.-based company that provides design, engineering, manufacturing, construction and facilities management services to nuclear, renewable, fossil power, industrial and government customers worldwide. B&W's boilers supply more than 300,000 megawatts of installed capacity in over 90 countries around the world.[1]
During World War II, over half of the American US Navy fleet was powered by Babcock & Wilcox boilers.[2] The company has its headquarters in Charlotte, North Carolina with operations in Lynchburg, Virginia; Barberton, Ohio; West Point, Mississippi; Mount Vernon, Indiana; Oak Ridge, Tennessee; Euclid, Ohio; and, in Canada, Cambridge, Ontario.
The Babcock & Wilcox Company is a provider of energy products and services. The Babcock & Wilcox Operations of McDermott International, Inc. represent a combined reporting company consisting of the assets and liabilities in managing and operating the Power Generation Systems and Government Operations segments of McDermott International, Inc. (MII) in addition to two captive insurance companies, which have been combined and contributed to The Babcock & Wilcox Company (B&W) in conjunction with the spin-off of B&W by MII. The Company operate in two business segments: Power Generation Systems and Government Operations. In January 2010, the Company acquired the net assets of Gotaverken Miljo AB (GMAB), a flue gas cleaning and energy recovery company based in Gothenburg, Sweden. On April 2, 2010, the Company acquired the electrostatic precipitator aftermarket and emissions monitoring business units of GE Energy, a division of General Electric Company.
Power Generation Systems
The Company’s Power Generation Systems segment supplies boilers fired with fossil fuels, such as coal, oil and natural gas, or renewable fuels, such as biomass, municipal solid waste and concentrated solar energy. In addition, it supplies commercial nuclear steam generators and components, environmental equipment and components, and related services to customers in different regions worldwide. It designs, engineers, manufactures, supplies, constructs and services utility and industrial power generation systems, including boilers used to generate steam in electric power plants, pulp and paper making, chemical and process applications and other industrial uses.
Government Operations
The Company’s Government Operations segment manufactures nuclear components and provides various services to the United States Government, including uranium processing, environmental site restoration services and management and operating services for various United States Government-owned facilities. These services are provided to the department of energy (DOE), including the National Nuclear Security Administration, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management.
Babcock strengthened its shipbuilding capabilities in 2000. It acquired Armstrong Technology, a Newcastle warship designer, and FBM Marine, a producer of smaller vessels based in Cowes. FBM's shipyard was not included in the deal, and its staff was transferred to new offices at Southampton and Babcock's other facilities.
The company's rail division, also based at Rosyth, was developing innovative, flexible rail wagons. In January 2001, Babcock signed a deal to run naval maintenance at Faslane, a base for four British Vanguard class nuclear submarines.
Babcock acquired Hunting Contract Services (HCS), the military support services business of Hunting, an oil services provider, in 2001. The deal was worth £60.9 million, and included the transfer of 1,800 employees to Babcock. The acquisition was part of a new strategic focus on support services, rather than engineering.
The entire materials handling business was slated for sale in 2001, but a slowing global economy scuttled the offering, recorded Sunday Business. The Scandinavian wood pulp-handling business was divested, however.
SGI, a civil support services group, was acquired in 2002. Military work continued to keep the Rosyth shipyard busy, and Executive Chairman Gordon Campbell (appointed in 2001) was making government work the company's main strategic focus, according to the Evening Standard. Babcock also managed several army bases and helped train pilots, the latter business picked up in the Hunting acquisition.
After losing £7.3 million in fiscal 2001 and £13.9 million in 2002, Babcock posted a pretax profit of £13.4 million in fiscal 2003. Sales rose 25 percent to £409 million.
Peterhouse Group PLC was acquired in June 2003 for £99 million. Peterhouse had formerly competed with Babcock in the support services business but was stronger in the civil sector.
Babcock posted sales of £452 million ($825.3 million) in the 2004 fiscal year, up 23.8 percent. Net income rose 130 percent to £16.4 million ($30.3 million).
Babcock won contracts to refit four British warships in the 2004 calendar year. The news was accompanied by layoffs of nearly 300 workers at Rosyth, part of the restructuring meant to make the company more competitive in such bids.
Principal Subsidiaries: Babcock Eagleton, Inc.; Certas PLC; Peterhouse Group PLC.
Principal Divisions: Babcock Defence Services; Babcock Engineering Services; Eve Group; First Engineering; Babcock Infrastructure Services; Babcock Naval Services.
Principal Competitors: BAE Systems PLC; Capita; DML Group; Serco Group; VT Group PLC; Weir Group.
OVERALL
Beta: 0.04
Market Cap (Mil.): €3,689.20
Shares Outstanding (Mil.): 117.45
Annual Dividend: --
Yield (%): --
FINANCIALS
BWCne.BE Industry Sector
P/E (TTM): 24.01 54.05 17.05
EPS (TTM): 3.22 -- --
ROI: -- 4.56 3.26
ROE: -- 5.54 5.84
Key Dates:
1891: Babcock & Wilcox Ltd. is formed to supply boilers outside the United States and Cuba.
1913: The company wins a contract to build a steam boiler at Rosyth Dockyard.
1987: FKI Electricals merges with Babcock International.
1989: FKI and Babcock demerge.
1995: Babcock's historic boiler business is sold off.
1997: Rosyth Dockyard is acquired.
2000: Babcock shifts focus to support services.
2003: The Peterhouse Group acquisition boosts civil-related business.
Name Age Since Current Position
Fees, John 53 2010 Non-Executive Chairman of the Board
Bethards, Brandon 63 2010 President, Chief Executive Officer, Director
Taff, Michael 49 2010 Chief Financial Officer, Senior Vice President
Cochran, S. Robert 58 2006 President of Babcock & Wilcox Technical Services Group, Inc
Killion, Richard 63 2008 President and Chief Operating Officer of Power Generation Group, Inc.
Mowry, Christofer 48 2010 President of Babcock & Wilcox Nuclear Energy, Inc.
Baker, Peyton 63 2011 President of B&W NOG
Salomone, Mary 51 2010 Chief Operating Officer
Canafax, James 40 2010 Senior Vice President, General Counsel, Corporate Secretary
Dudich, George 50 2010 Senior Vice President - Business Development & Strategic Planning
Black, David 49 2010 Chief Accounting Officer, Vice President
Apker, Jenny 53 2010 Vice President, Treasurer
Athanas, Vangel 55 2008 Vice President - Human Resources
McWilliams, D. Bradley 68 2010 Independent Lead Director
Goldman, Robert 69 2010 Independent Director
Hanks, Stephen 60 2010 Independent Director
Mies, Richard 66 2010 Independent Director
Weyers, Larry 66 2010 Independent Director
Pramaggiore, Anne 52 2011 Independent Director
COMPANY ADDRESS
The Babcock and Wilcox Co
The Harris Building
13024 Ballantyne Corporate Place
Suite 700
During World War II, over half of the American US Navy fleet was powered by Babcock & Wilcox boilers.[2] The company has its headquarters in Charlotte, North Carolina with operations in Lynchburg, Virginia; Barberton, Ohio; West Point, Mississippi; Mount Vernon, Indiana; Oak Ridge, Tennessee; Euclid, Ohio; and, in Canada, Cambridge, Ontario.
The Babcock & Wilcox Company is a provider of energy products and services. The Babcock & Wilcox Operations of McDermott International, Inc. represent a combined reporting company consisting of the assets and liabilities in managing and operating the Power Generation Systems and Government Operations segments of McDermott International, Inc. (MII) in addition to two captive insurance companies, which have been combined and contributed to The Babcock & Wilcox Company (B&W) in conjunction with the spin-off of B&W by MII. The Company operate in two business segments: Power Generation Systems and Government Operations. In January 2010, the Company acquired the net assets of Gotaverken Miljo AB (GMAB), a flue gas cleaning and energy recovery company based in Gothenburg, Sweden. On April 2, 2010, the Company acquired the electrostatic precipitator aftermarket and emissions monitoring business units of GE Energy, a division of General Electric Company.
Power Generation Systems
The Company’s Power Generation Systems segment supplies boilers fired with fossil fuels, such as coal, oil and natural gas, or renewable fuels, such as biomass, municipal solid waste and concentrated solar energy. In addition, it supplies commercial nuclear steam generators and components, environmental equipment and components, and related services to customers in different regions worldwide. It designs, engineers, manufactures, supplies, constructs and services utility and industrial power generation systems, including boilers used to generate steam in electric power plants, pulp and paper making, chemical and process applications and other industrial uses.
Government Operations
The Company’s Government Operations segment manufactures nuclear components and provides various services to the United States Government, including uranium processing, environmental site restoration services and management and operating services for various United States Government-owned facilities. These services are provided to the department of energy (DOE), including the National Nuclear Security Administration, the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management.
Babcock strengthened its shipbuilding capabilities in 2000. It acquired Armstrong Technology, a Newcastle warship designer, and FBM Marine, a producer of smaller vessels based in Cowes. FBM's shipyard was not included in the deal, and its staff was transferred to new offices at Southampton and Babcock's other facilities.
The company's rail division, also based at Rosyth, was developing innovative, flexible rail wagons. In January 2001, Babcock signed a deal to run naval maintenance at Faslane, a base for four British Vanguard class nuclear submarines.
Babcock acquired Hunting Contract Services (HCS), the military support services business of Hunting, an oil services provider, in 2001. The deal was worth £60.9 million, and included the transfer of 1,800 employees to Babcock. The acquisition was part of a new strategic focus on support services, rather than engineering.
The entire materials handling business was slated for sale in 2001, but a slowing global economy scuttled the offering, recorded Sunday Business. The Scandinavian wood pulp-handling business was divested, however.
SGI, a civil support services group, was acquired in 2002. Military work continued to keep the Rosyth shipyard busy, and Executive Chairman Gordon Campbell (appointed in 2001) was making government work the company's main strategic focus, according to the Evening Standard. Babcock also managed several army bases and helped train pilots, the latter business picked up in the Hunting acquisition.
After losing £7.3 million in fiscal 2001 and £13.9 million in 2002, Babcock posted a pretax profit of £13.4 million in fiscal 2003. Sales rose 25 percent to £409 million.
Peterhouse Group PLC was acquired in June 2003 for £99 million. Peterhouse had formerly competed with Babcock in the support services business but was stronger in the civil sector.
Babcock posted sales of £452 million ($825.3 million) in the 2004 fiscal year, up 23.8 percent. Net income rose 130 percent to £16.4 million ($30.3 million).
Babcock won contracts to refit four British warships in the 2004 calendar year. The news was accompanied by layoffs of nearly 300 workers at Rosyth, part of the restructuring meant to make the company more competitive in such bids.
Principal Subsidiaries: Babcock Eagleton, Inc.; Certas PLC; Peterhouse Group PLC.
Principal Divisions: Babcock Defence Services; Babcock Engineering Services; Eve Group; First Engineering; Babcock Infrastructure Services; Babcock Naval Services.
Principal Competitors: BAE Systems PLC; Capita; DML Group; Serco Group; VT Group PLC; Weir Group.
OVERALL
Beta: 0.04
Market Cap (Mil.): €3,689.20
Shares Outstanding (Mil.): 117.45
Annual Dividend: --
Yield (%): --
FINANCIALS
BWCne.BE Industry Sector
P/E (TTM): 24.01 54.05 17.05
EPS (TTM): 3.22 -- --
ROI: -- 4.56 3.26
ROE: -- 5.54 5.84
Key Dates:
1891: Babcock & Wilcox Ltd. is formed to supply boilers outside the United States and Cuba.
1913: The company wins a contract to build a steam boiler at Rosyth Dockyard.
1987: FKI Electricals merges with Babcock International.
1989: FKI and Babcock demerge.
1995: Babcock's historic boiler business is sold off.
1997: Rosyth Dockyard is acquired.
2000: Babcock shifts focus to support services.
2003: The Peterhouse Group acquisition boosts civil-related business.
Name Age Since Current Position
Fees, John 53 2010 Non-Executive Chairman of the Board
Bethards, Brandon 63 2010 President, Chief Executive Officer, Director
Taff, Michael 49 2010 Chief Financial Officer, Senior Vice President
Cochran, S. Robert 58 2006 President of Babcock & Wilcox Technical Services Group, Inc
Killion, Richard 63 2008 President and Chief Operating Officer of Power Generation Group, Inc.
Mowry, Christofer 48 2010 President of Babcock & Wilcox Nuclear Energy, Inc.
Baker, Peyton 63 2011 President of B&W NOG
Salomone, Mary 51 2010 Chief Operating Officer
Canafax, James 40 2010 Senior Vice President, General Counsel, Corporate Secretary
Dudich, George 50 2010 Senior Vice President - Business Development & Strategic Planning
Black, David 49 2010 Chief Accounting Officer, Vice President
Apker, Jenny 53 2010 Vice President, Treasurer
Athanas, Vangel 55 2008 Vice President - Human Resources
McWilliams, D. Bradley 68 2010 Independent Lead Director
Goldman, Robert 69 2010 Independent Director
Hanks, Stephen 60 2010 Independent Director
Mies, Richard 66 2010 Independent Director
Weyers, Larry 66 2010 Independent Director
Pramaggiore, Anne 52 2011 Independent Director
COMPANY ADDRESS
The Babcock and Wilcox Co
The Harris Building
13024 Ballantyne Corporate Place
Suite 700