McDermott Q2 Loss Narrows - Update

(RTTNews) - Engineering and construction company McDermott International Inc (MDR), Monday reported a smaller loss for the second quarter, as a sharp drop in revenues were masked by lower operating costs. Loss for the quarter was lower than what analysts expected but revenues fell short of Street estimates.

Houston, Texas-based McDermott's second-quarter loss narrowed to $10.8 million or $0.05 per share from $149.4 million or $0.63 per share last year. On average, 16 analysts polled by Thomson Reuters estimated a loss of $0.17 per share. Analysts' estimates typically exclude special items.

McDermott's revenues for the quarter dropped 26 percent to $476.08 million from $647.25 million a year ago, hurt by lower marine contribution. Thirteen analysts expected revenues of $651.31 million for the quarter.

Restructuring expenses dropped to $1.3 million from $15.5 million last year. Cost of operations declined to $432.3 million from $723.3 million a year ago. The company also recorded a gain of $46 million on asset sales for the quarter.

"The results reflect our efforts to improve execution, and we are pleased to return three legacy projects to profitability and to complete two others," said CEO David Dickson said. The company also added that turnaround is on track.

MDR closed Monday's trading at $7.26, up $0.07 or 0.97%, on the NYSE. The stock, however, fell $0.26 or 3.58% in after-hours trade.