Babcock & Wilcox Evaluates Separation Of Businesses

(RTTNews) - Babcock & Wilcox Co. (BWC) Wednesday said its board is evaluating separation of the company's Power Generation Business and Government & Nuclear Operations Business into two publicly traded companies.

The energy technology and services provider noted that its board's aim is to determine whether a separation will create opportunity for enhanced shareholder value and business focus.

B&W has retained JPMorgan as its financial advisor and Wachtell, Lipton, Rosen & Katz and Jones Day as legal advisors to assist in the process.

The company, however, said there can be no assurance that a separation will occur or, if a separation is approved, its terms or timing.

B&W will provide additional detail on its third-quarter 2014 earnings call in early November.

In early August, the firm had reported a 64 percent decline in profit for the second quarter from last year, reflecting lower revenues and one-time costs.

Revenues for the quarter declined 23 percent, with 31 percent fall in Power Generation segment revenues and 11 percent decrease in Nuclear Operations segment.

At that time, the company lowered its adjusted earnings outlook as well as the top end of its revenue guidance range, citing the sharp reduction in utility spending on U.S. environmental and service projects.

BWC closed Tuesday's trading at $27.69, down 0.75 percent.