CHARLOTTE, N.C.--(BUSINESS WIRE)--The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary Babcock & Wilcox Nuclear Operations Group, Inc. (B&W NOG) has been awarded contracts totaling approximately $535.1 million for the manufacture of naval nuclear reactor components for U.S. Navy submarines and aircraft carriers.
Of this work, approximately $424.6 million was issued as options under previously announced contract awards in 2010 and 2013. Approximately $110.5 million has been issued under new contracts awarded in late 2014.
The work under these contracts, which began in January 2015, is being performed at B&W NOG's facilities in three states over the next several years.
The primary activity funded under these contracts is the manufacture of nuclear propulsion components for Virginia Class submarines and Ford Class aircraft carriers. Also included are work scopes for the disassembly and recovery of highly enriched uranium materials.
"We are quite excited to continue our decades-long relationship with the U.S. Naval Reactors Program, and these new awards will add significantly to our solid backlog," said Peyton S. Baker, President and Chief Operations Officer for B&W’s Government & Nuclear Operations Group. "Our employees remain dedicated to providing only the highest quality products and services that are critical to supporting the defense of our nation."
B&W has been manufacturing naval nuclear components and reactors since the 1950s, when it designed and fabricated components for the USS Nautilus, the world’s first nuclear-powered submarine. Today, B&W NOG manufactures naval nuclear reactors for the U.S. Department of Energy / National Nuclear Security Administration’s Naval Nuclear Propulsion Program, which in turn supplies them to the U.S. Navy for use in submarines and aircraft carriers. Fuel for the reactors is provided by Nuclear Fuel Services, Inc., a subsidiary of B&W NOG.
About B&W
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 11,600 people, in addition to joint venture employees located at projects around the world. Follow us on Twitter @BabcockWilcox and 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 impact of the new contract awards on backlog, to the extent backlog can be viewed as an indicator of future revenues. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts and adverse changes in U.S. Government appropriations. 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, 2013 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.
