Michael Baker posts $2.3 million quarterly loss
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 firstname.lastname@example.org
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Small retailers at intersection of social networks, foot traffic
- Woman on dating site looks too good to be true: How to vet that pic
- Stocks drift lower as Fed toes the line on interest rate plans
- Business Council for Peace program works to export profits, peace
- 153-year-old Venango well pumps out oil, history
- In ‘StockCity,’ real investing like game
- Test-tube tuna may be sea change
- Iron ore price decline hurts U.S. Steel’s cost advantage over rivals
- Kia’s 1st electric vehicle charges fast, goes distance
- Pennsylvania unemployment rate drops to six-year low
- Banks fined billions for traders’ collusion in manipulating currency markets