TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Michael Baker posts $2.3 million quarterly loss

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By Thomas Olson
Tuesday, March 5, 2013, 2:30 p.m.
 

Michael Baker Corp. expects revenue to decline 4 percent to 5 percent this year largely from tighter public budgets for its engineering and construction services, the company said Tuesday after posting a quarterly loss.

Based in Moon Township, Michael Baker executives said state and federal belt-tightening — along with funding uncertainties from government sequestration cuts that began Friday — would dampen revenue this year.

To offset lower revenue, Michael Baker expects to save about $1 million this year in occupancy costs by shuttering an unspecified number of small project offices, said spokesman David Higie. He could not say how many jobs could be cut as a result. The company eliminated 150 jobs last year in a cost-cutting initiative that reduced operating costs by $21 million.

Michael Baker employs 3,000 people in 100 offices nationwide, including 725 people in Western Pennsylvania.

The company on Tuesday posted a $2.3 million loss, or 24 cents a share, for the October-December quarter, mostly due to one-time charges of $5 million. That compares with

a $4.4 million profit, or 47 cents a share, a year ago. Revenue fell 9.6 percent to $141 million from $156 million, mostly due to lower revenue from its transportation segment.

The charges in the quarter included $1.1 million in severance paid in December to Bradley Mallory, the former PennDoT secretary who stepped down as Michael Baker's CEO at the board's request in mid-December, as well as a money set aside for a receivable on an international transportation project.

The company is still searching for a new CEO, said Chief Legal Officer H. James McKnight in a conference call with analysts,

For the full year, earnings dropped 84 percent to $2.8 million, or 29 cents a share, compared with $17.3 million, or $1.85 a share. Revenue increased 10.2 percent to $593 million from $538 million, driven mostly by an acquisition in late 2011.

Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or tolson@tribweb.com

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Shell shovels millions into proposed Beaver County plant site
  2. Extended oil slump takes toll
  3. Muni bond funds stressed
  4. Companies hand out perks, benefits instead of pay raises
  5. Small business hangs on fate of Export-Import Bank
  6. Bond funds hold onto cash
  7. When it comes to home ownership, Hispanics finding locked doors
  8. Off-duty but on call: Suits seek overtime
  9. Of Caitlyn Jenner and workplace restrooms
  10. Tech Q&A: Why you should test your router
  11. $2-per-gallon gas expected by year’s end, but not in Western Pa.