Halter Marine Group, Inc. announced the company's financial results for the quarter ended December 31, 1998 were a loss of one million dollars, on revenue of $279.2 million. This compares to net income of $8.8 million, on revenue of $180.6 million in the third quarter of fiscal 1998.
For the nine months ended December 31, 1998, the company reported net income of $11.8 million, on revenue of $759.8 million. For the comparable 1997 period, Halter Marine Group reported net income of $22 million, on revenue of $480.8 million.
The net loss for the quarter is primarily attributable to cost overruns on two drill barge contracts comprising a total of six barges. Results for the quarter also reflect the positive impact of $6.9 million in income tax benefit that was recorded during the period.
"The company's management team is obviously disappointed with these financial results," said John Dane III
, chairman, president and CEO. "We have made organizational changes to increase operational control of our Rigs business to ensure the events responsible for these losses will not occur again.
"The reductions will be implemented in our vessels and rigs segments and will represent a nearly 20 percent reduction from current SG&A levels in those segments. The reductions will be achieved through lower headcount, reduced executive compensation, less spending and streamlining operations," Dane said. "Furthermore, company-wide capital expenditures will be reduced by approximately 60 percent during fiscal 2000 and will be largely limited to maintenance capital spending.