B&W Subsidiary Awarded Contract for Naval Reactors Components Worth Up to $1.3 Billion
CHARLOTTE, N.C.--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, B&W Nuclear Operations Group, Inc. (B&W NOG), has received a contract from the U.S. Naval Reactors Program worth up to $1.3 billion in funding over the next three years if fully executed.
“The reliability of our nuclear products will again be called on to help ensure that our Navy can successfully meet its missions.”
Under the contract, which is for the manufacture of nuclear components to support U.S. defense programs, including the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers, an order for $508 million has been released for work to begin immediately. This will be followed by various releases for subsequent FY14, FY15 and FY16 options, all of which are in addition to existing business awarded to B&W NOG under other multi-year and annually awarded contracts.
“We are very pleased with this contract and the opportunity it affords B&W to continue to support our country, our customer, our employees and our shareholders,” said Peyton S. Baker, President B&W Nuclear Operations Group. “The reliability of our nuclear products will again be called on to help ensure that our Navy can successfully meet its missions.”
Work under the contract will be performed at B&W NOG’s facilities in Lynchburg, Va., Mount Vernon, Ind. and Barberton and Euclid, Ohio.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements relating to the performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the U.S. Naval Reactors Program contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and adverse changes in U.S. Government appropriations or spending priorities. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's annual report on Form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.