Shaw Group forecasts weak 2013 results as orders fall

Baton Rouge-based engineering firm Shaw Group, which agreed to a $3 billion takeover by Chicago Bridge & Iron Co. in July, is forecasting 2013 results far below market expectations due to a fall in orders, the company says in a quarterly report released today. Reuters reports investor concerns over certain provisions in the Shaw-CB&I merger deal led to doubts about whether it would go through. An investor fund alleged that the deal undervalued the company, accusing Shaw's chairman of potential conflicts of interest. Shaw today reiterated the deal is progressing on schedule and is expected to close in the first quarter of 2013. The company expects an adjusted profit of between $1.70 and $1.90 per share on revenue of $5 billion to $5.5 billion. Analysts on average were expecting a full-year profit of $2.56 per share on revenue of $6.04 billion. Shaw reports net income of $113.2 million, or $1.68 per share, in the fourth quarter, ended Aug. 31, due to higher sales in its power business. Shaw reported a loss of $90.3 million, or $1.25 per share, a year earlier. The company sold its stake in nuclear power plant company Westinghouse Electric to Toshiba Corp. for $1.6 billion earlier this month. Excluding Westinghouse, Shaw earned $1.86 per share. Analysts had expected a profit of $1.36 per share. Revenue was flat at $1.5 billion but above expectation of $1.44 billion. Read the full story here; or check out the complete report for yourself here.

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