Bruce Wilkinson News

McDermott International, Inc. reported net income of $19.3 million on revenues of $591.2 million for the quarter ended September 30, 2001. Earnings were up 245 percent as compared to the same quarter last year, when net income was $5.6 million. Revenues increased by more than 50 percent over the third quarter last year, when revenues were $391.0 million. Operating income was $33.6 million in the third quarter of 2001, compared to $12.7 million a year ago, a 165 percent increase quarter over quarter. For the first nine months of 2001, McDermott reported revenues of $1.52 billion and net income of $22.9 million, or $0.37 a diluted share. These results compare with revenues of $1.47 billion and net income of $3.4 million, or $0.06 a diluted share, in the same period a year ago.

McDermott International, Inc. reported net income of $19.3 million on revenues of $591.2 million for the quarter ended September 30, 2001. Earnings were up 245% as compared to the same quarter last year, when net income was $5.6 million, or $0.09 a diluted share. Revenues increased by more than 50% over the third quarter last year, when revenues were $391 million. Operating income was $33.6 million in the third quarter of 2001, compared to $12.7 million a year ago, a 165% increase quarter over quarter. For the first nine months of 2001, McDermott reported revenues of $1.52 billion and net income of $22.9 million. These results compare with revenues of $1.47 billion and net income of $3.4 million in the same period a year ago.

In a ruling issued January 4, 2002, Judge Sarah S. Vance of the U.S. District Court for the Eastern District of Louisiana granted Babcock & Wilcox's and McDermott International, Inc.'s (NYSE: MDR) motions for summary judgement against a group of London underwriters and dismissed the declaratory judgment action filed by the insurers. The underwriters had sought to annul an agreement which acknowledges coverage for B&W's asbestos exposure and sets forth the agreements of the insurers to pay claims within that coverage. In her ruling, Judge Vance concluded that the underwriters' claims lacked a factual or legal basis. The agreement with the underwriters went into effect in April 1990…

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.