McDermott International, Inc. reported a net loss of $.6 million or a $.01 per share loss (basic and diluted) for the first quarter of 2002, compared to a net loss of $4.4 million or $.07 per share loss (basic and diluted) for the first quarter of 2001. The results for the first quarter of 2001 have been restated to reflect the Hudson Products Company subsidiary as a discontinued operation under Statement of Financial Accounting Standards No. 144 ("FASB 144"). While not qualifying for such treatment under FASB 144, we have also included our McDermott Engineers & Constructors (Canada) LTD. subsidiary, which we sold in October of 2001, as a discontinued operation to provide a more meaningful quarter to quarter comparison.
The company had revenues of $399.2 million in the first quarter of 2002 compared to revenues of $268.4 million in the first quarter of 2001. The backlog, totaling $3.2 billion at March 2002, increased sequentially from December 2001 by over $300 million and by greater than $900 million from March of 2001.
"Despite the increased revenues in our marine construction services segment and the absence of goodwill amortization expense in the current quarter, we experienced cost overruns on a first of a kind spar project at J. Ray McDermott
and increased pension expense at corporate, resulting in an operating loss for the quarter," said Bruce
Wilkinson, chairman of the board and chief executive officer. "Clearly our focus is to capitalize on the experiences we gained on the Medusa EPIC spar project in executing our future EPIC spar projects."