B&W Announces $195 Million in Naval Reactors Contracts and Orders

The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary B&W Nuclear Operations Group, Inc. (B&W NOG) has received contracts and orders from the U.S. Naval Reactors Program worth approximately $195 million.

Four new incrementally funded contracts totaling $76.8 million were awarded for engineering design, fabrication and further development work on the Ohio-class submarine replacement program.

A new contract valued at $18.8 million was also awarded for disassembly and recovery of highly enriched uranium materials in FY2014.

A $23.7 million incremental order for the manufacture of nuclear components to support U.S. defense programs, including the manufacture of U.S. Naval nuclear power systems for submarines and aircraft carriers, has also been released. This additional FY2014 order is part of a previously announced $1.3 billion contract.

In addition, an order for $76 million has been received for the procurement of material to be used in the assembly of nuclear propulsion components. This FY2014 release is part of a previously announced $366 million contract.

“B&W is pleased to receive these contracts supporting the U.S. defense programs, including the Ohio-class submarine replacement program and the overall mission of the U.S. Navy,” said Peyton S. Baker, President and Chief Operating Officer of B&W’s government operations. “Smart execution in our shops is of paramount importance to the safe, reliable and cost-effective delivery of this hardware and design services to the U.S. government.”

Work under these contracts will be performed at B&W NOG’s facilities in Lynchburg, Va., Mount Vernon, Ind. and Barberton and Euclid, Ohio.

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 12,000 people, in addition to approximately 10,200 joint venture employees. 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 performance, timing and value, to the extent contract value can be viewed as an indicator of future revenues, of the U.S. Naval Reactors Program contracts and orders. 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.