Monday, June 30, 2008

Baker issues restated profits that show improvement

Michael Baker Corp. today issued financial results for 2007 after sorting out accounting errors that forced the Moon-based engineering and energy management company to restate results for 2006 and the first nine months of 2007.

Restating 2006's financial statement made 2007's results look even better.

For 2007, Baker reported net income of $19.3 million, or $2.18 a share, up 87.4 percent from 2006 net income of $10.3 million, or $1.19 a share. The 2006 net income figure originally had been reported as $11.8 million, or $1.36 a share.

Revenue for 2007 totalled $727 million, up 12.4 percent from 2006's $647 million. The 2006 figure was restated downward from $651 million originally reported.


"We are pleased to have completed the restatement and to be able to report our outstanding 2007 financial performance," CEO Bradley L. Mallory said in a statement.

Baker over the last three years has been forced to request extensions from the Securities and Exchange Commission for reporting its financial results due to the company finding, then correcting accounting errors.

Baker's engineering segment last year had revenue of $401 million, up from $380 million in 2006, while the company's energy business reported 2007 revenue of $326 million, compared to restated 2006 revenue of $267 million. Originally, the Baker energy business had $270.9 million in 2006 revenue.

"We can now place our complete focus on executing our business strategy for the company," Mallory said in a statement. "(That) includes our core engineering business, both organically and through acquisition, resuming our evaluation of strategic alternatives, including a potential sale of our energy business, and continuing to make the necessary process improvements which will contribute to increasing our profitability on a consistent basis."

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