Aug. 10--Second-quarter income and revenue fell at McDermott International Inc. (NYSE:MDR), parent of Babcock & Wilcox in Barberton.

The Houston-based company reported Monday it had net income of $92.6 million, or 40 cents per share, on revenue of nearly $1.6 billion. Income was down 47.8 percent from record second quarter 2008's $177.5 million, or 77 cents per share, on revenue of nearly $1.8 billion.

The revenue decrease was primarily attributed to lower activity in B&W's Power Generation Systems segment, McDermott reported after the stock market closed Monday. The decrease was partially offset by a rise in McDermott's Government Operations segment.

McDermott shares fell 20 cents to $21.32. Shares are up 115.8 percent, including reinvested dividends, since Jan. 1 but are down 48.4 percent from a year ago.

"McDermott delivered solid results in the 2009 second quarter and produced the highest level of quarterly income since the second quarter of 2008," Chief Executive John A. Fees said in a prepared statement.

"While the markets we serve lack conviction due to worldwide economic conditions, the company's bidding activity remains good, particularly in oil and gas. Our liquidity improved sequentially to over $1 billion, and McDermott's backlog remains strong."

As of June 30, McDermott reported that its consolidated backlog was $9.5 billion, compared with $9.8 billion a year ago.

Babcock & Wilcox Power Generation Group, one of Summit County's largest private employers, makes coal-fired boilers and pollution-control equipment for electric utilities and others. Another B&W branch focuses on nuclear energy products. Division headquarters is in Virginia.

The Power Generation Systems segment had revenue of $471.6 million, down 32.4 percent from $698.1 million a year ago. Customers cut back on major capital projects such as power plant construction and retrofits of existing power plants, McDermott said.

Power Generation had second-quarter income of $43.9 million, down 58.6 percent from $106 million a year ago.

As of June 30, segment backlog was $2.2 billion, compared with backlog of $3 billion as of June 30, 2008,

McDermott's Offshore Oil & Gas Construction Segment had revenue of $832.7 million compared with $872.3 million a year ago.

Government Operations revenue was $261.4 million compared with $225.8 million a year ago.

The company will do a live webcast of a conference call with industry analysts at 10 a.m. Tuesday. The Web site is http://www.mcdermott.com.

-----

To see more of the Akron Beacon Journal, or to subscribe to the newspaper, go to http://www.ohio.com.

Copyright (c) 2009, The Akron Beacon Journal, Ohio

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:MDR,

A service of YellowBrix, Inc.