SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended: March 31, 1995
Commission File Number: 1-5642
DRAVO CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 25-0447860
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
One Oliver Plaza, Pittsburgh, Pennsylvania 15222
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (412) 566-3000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
The number of shares outstanding of each of the registrant's classes of common
stock as of April 30, 1995:
Title of Class Shares Outstanding
Common Stock, $1.00 par value 14,770,680
<PAGE>
DRAVO CORPORATION AND SUBSIDIARIES
INDEX
PART I - FINANCIAL INFORMATION
Page No.
Consolidated Balance Sheets at March 31, 1995
and December 31, 1994 3, 4
Consolidated Statements of Operations for the
Quarters ended March 31, 1995 and 1994 5
Consolidated Statements of Cash Flows for the
Quarters ended March 31, 1995 and 1994 6, 7
Notes to Consolidated Financial Statements 8-13
Management's Discussion and Analysis of Financial
Condition and Results of Operations 14, 15
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 16
SIGNATURES 17
<PAGE> -2-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000's)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,753 $ 2,027
Accounts receivable, net 17,513 140,602
Notes receivable, net 1,598 2,803
Inventories 13,775 12,638
Other current assets 3,709 2,067
Total current assets 39,348 160,137
Advances to and equity in joint ventures 2,160 2,536
Notes receivable 3,690 5,061
Other assets 20,922 21,281
Deferred income taxes 24,853 24,853
Property, plant and equipment 209,844 195,333
Less: accumulated depreciation and
amortization 102,534 101,872
Net property, plant and equipment 107,310 93,461
Total assets $198,283 $307,329
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> -3-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000's)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Current portion of long-term notes $ 6,084 $ 85,077
Accounts payable - trade 19,992 36,257
Income taxes 509 352
Accrued insurance 1,410 2,265
Accrued retirement contribution 2,825 2,388
Net liabilities of discontinued operations 9,722 13,547
Other current liabilities 10,467 13,912
Total current liabilities 51,009 153,798
Long-term notes 36,293 42,440
Net liabilities of discontinued operations 7,018 8,445
Other liabilities 5,988 5,900
Redeemable preference stock:
Par value $1, issued 200,000 shares:
Series D, $12.35 cumulative, convertible,
exchangeable (entitled in liquidation to
$20.0 million) 20,000 20,000
Shareholders' equity:
Preference stock, par value $1, authorized
1,878,870: Series B, $2.475 cumulative,
convertible; issued 27,386 and 28,386 shares
(entitled in liquidation to $1.5 million and
$1.6 million); 27 28
Series D, reported above
Common stock, par value $1, authorized
35,000,000 shares; issued 14,992,055
and 14,985,839 14,992 14,986
Other capital 63,573 63,554
Retained earnings 1,919 18
Treasury stock at cost:
Common shares 185,291 and 119,221 (2,536) (1,840)
Total shareholders' equity 77,975 76,746
Total liabilities and shareholders' equity $198,283 $307,329
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> -4-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited, $ in 000's, except per share data)
<TABLE>
<CAPTION>
Quarters ended March 31,
1995 1994
<S> <C> <C>
Revenue $ 33,905 $ 57,681
Cost of revenue 25,204 50,107
Gross profit 8,701 7,574
Selling, general and administrative expenses 5,191 7,479
Earnings from operations 3,510 95
Other income (expense):
Equity in earnings of joint ventures 234 337
Other income 179 406
Interest income 75 132
Interest expense (1,273) (2,241)
Net other income (expense) (785) (1,366)
Earnings (loss) before taxes 2,725 (1,271)
Provision for income taxes 190 --
Earnings (loss) before cumulative
accounting change 2,535 (1,271)
Cumulative effect of accounting change -- (1,361)
Net earnings (loss) 2,535 (2,632)
Preference dividends 634 637
Net earnings (loss) available
for common shares $ 1,901 $ (3,269)
Earnings (loss) per share:
Operations $ 0.13 $ (0.13)
Cumulative effect of accounting change -- (0.09)
Total $ 0.13 $ (0.22)
Weighted average shares outstanding 14,912 14,852
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> -5-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited, $ in 000's)
<TABLE>
<CAPTION>
Quarters ended March 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ 2,535 $ (1,271)
Adjustments to reconcile net earnings
to net cash provided (used) by continuing
operations activities:
Depreciation and amortization 2,151 4,417
Change in accounting principle -- (1,361)
Gain on sale of assets -- (406)
Equity in joint ventures 376 (263)
Changes in assets and liabilities:
Decrease in accounts receivable 2,625 3,721
Decrease in notes receivable 77 92
Decrease (increase) in inventories (1,137) 1,841
Increase in other current assets (1,368) (3,320)
Increase (decrease) in accounts payable
and accrued expenses (19,448) 3,020
Increase (decrease) in taxes payable 157 (77)
Decrease (increase) in other assets 359 (2,438)
Increase in other liabilities 88 59
Net cash provided (used) by continuing
operations activities (13,585) 4,014
Decrease in net liabilities of discontinued
operations (4,952) (2,010)
Proceeds from repayment of notes receivable
from sale of discontinued operations 2,200 400
Net cash used by discontinued operations
activities (2,752) (1,610)
Net cash provided (used) by operating
activities (16,337) 2,404
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets 120,464 652
Additions to property, plant and equipment (16,954) (5,466)
Other, (net) (1) 1
Net cash provided (used) by investing activities $103,509 $ (4,813)
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> -6-
DRAVO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited, $ in 000's)
<TABLE>
<CAPTION>
Quarters ended March 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowing under revolving credit
agreements $ -- $ 4,000
Principal payments under long-term notes (85,140) (517)
Proceeds from issuance of common stock 24 23
Purchase of treasury stock (696) --
Dividends on preference stock (634) (637)
Net cash provided (used) by financing activities (86,446) 2,869
Net increase in cash and cash equivalents 726 460
Cash and cash equivalents at beginning of
period 2,027 808
Cash and cash equivalents at end of period $ 2,753 $ 1,268
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest (net of amount capitalized) $ 1,748 $ 2,237
Income tax 33 77
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> -7-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(1) Basis of Presentation
The accompanying consolidated financial statements include the accounts
of Dravo Corporation and its majority-owned subsidiaries (the company).
The principal subsidiaries are Dravo Lime company, one of the nation's
largest lime producers, and Dravo Basic Materials Company, Inc. (DBM).
The company completed a transaction on December 30, 1994 in which it sold
substantially all the assets and certain liabilities of DBM. The assets
and liabilities sold have been removed from the company's March 31, 1995
and December 31, 1994 balance sheets. The March 31, 1994 statement of
operations includes the results of DBM for the quarter. Significant
intercompany balances and transactions have been eliminated in the
consolidation process.
These unaudited consolidated financial statements include all adjustments,
consisting only of normal, recurring accruals, which management considers
necessary for a fair presentation of the company's consolidated financial
position, results of operations, and cash flows for the interim periods
presented. Certain reclassifications of previously reported balances have
been made to conform to the current period's presentation.
(2) Inventories
Inventories are classified as follows:
<TABLE>
<CAPTION>
($ in 000's)
March 31, December 31,
1995 1994
<S> <C> <C>
Finished goods $ 1,880 $ 1,834
Materials and supplies 11,895 10,804
Net inventories $13,775 $12,638
</TABLE>
Inventories are valued at average production cost or market, whichever is
lower. The cost of products produced includes raw materials, direct
labor, and operating overhead.
<PAGE> -8-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Contingent Liabilities
The company has been notified by the federal Environmental Protection
Agency (EPA) that the EPA believes the company is a potentially
responsible party (PRP) for the clean-up of soil and groundwater
contamination at four subsites in Hastings, Nebraska. The Hastings site
is one of the EPA's priority sites for taking remedial action under the
Comprehensive Environmental Response, Compensation and Liability Act
(CERCLA).
At one of these subsites, a municipal landfill, the company believes it
could not have disposed of hazardous wastes at the particular subsite
because the landfill was closed prior to the time the company and its
predecessor initiated the operation which generated the type of hazardous
substances found at this subsite. Other PRPs, including the local
municipality, have agreed to perform the remedial investigation and to
design soil and groundwater remedies at this subsite.
The company has also been notified by EPA that EPA considers it a PRP at
another municipal landfill in Hastings. At least three other parties
(including the City of Hastings) are considered by EPA to be PRPs at this
second subsite. At this subsite, the company has concluded that the City
of Hastings is responsible for a proper closure of the landfill and the
remediation of any release of hazardous substances. In January, 1994, EPA
invited the company and the other PRPs to make an offer to conduct a
remedial investigation and feasibility study (RI/FS) of this subsite and
stated that the EPA was in the process of preparing a work plan for the
RI/FS. None of the PRPs has volunteered to undertake the RI/FS.
With respect to the third subsite, the company and two other PRPs have
been served with administrative orders directing them to undertake soil
remediation and interim groundwater remediation at that subsite. The
company is currently complying with these orders while reserving its right
to seek reimbursement from the United States for its costs if it is
determined it is not liable for response costs or if it is required to
incur costs because of arbitrary, capricious or unreasonable requirements
imposed by the EPA.
The EPA has taken no legal action with respect to its demand that the
company and the other PRPs pay its past response costs. A total of five
parties have been named by the EPA as PRPs at this subsite, but two of
them have been granted de minimis status. The company believes other
persons should also be named as PRPs.
The fourth subsite is a former naval ammunition depot which was
subsequently converted to an industrial park. The company and its
predecessor owned and operated an HVAC facility in this industrial park.
To date the company's investigation indicates that it did not cause the
release of hazardous substances in this subsite during the time it owned
and operated the facility. The United States has undertaken to conduct
the remediation of this subsite.
<PAGE> -9-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Contingent Liabilities (continued)
In addition to subsite clean-up, the EPA is seeking a clean-up of area-
wide contamination associated with all of the subsites in and around
Hastings, Nebraska. The company, along with other Hastings PRPs, has
recommended that the EPA adopt institutional controls as the area-wide
remedy in Hastings. EPA has indicated some interest in this proposal but
has decided to first conduct an area-wide remedial investigation before
choosing a remedy.
On August 10, 1992 the company filed suit in the Alabama District Court
against its primary liability insurance carriers and one of its
predecessor's insurers, seeking a declaratory judgment that the company
is entitled to a defense and indemnity under its contracts of insurance
(including certain excess policies provided by one of the primary
carriers) with regard to the third Hastings subsite. The company recently
settled the claim against its predecessor's insurer, but the case against
the company's insurers is still in litigation. An award of punitive
damages is also being sought against the company's insurers for their bad
faith in failing to investigate the company's claim and/or denying the
company's claim. The company has notified its primary and excess general
liability carrier, as well as the excess carrier of its predecessor, of
the receipt of its notice of potential liability at the first, second and
fourth subsites.
Estimated total clean-up costs, including capital outlays and future
maintenance costs for soil and groundwater remediation of approximately
$18 million, are based on independent engineering studies. Included in
the discontinued operations provision is the company's estimate that it
will participate in 33 percent of these remediation costs. The company's
estimated share of the costs is based on its assessment of the total
clean-up costs, its potential exposure, and the viability of other named
PRPs.
<PAGE> -10-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Contingent Liabilities (continued)
In 1990, the company filed an action now pending in Luzerne County,
Pennsylvania alleging breach of contract and unjust enrichment arising out
of the termination of a construction contract for the Hazleton
Gasification Facility Expansion. The suit named as defendants Continental
Energy Associates (CEA), the project owner; Continental Cogeneration
Corporation (CCC), the general partner of CEA; and Swiss Bank Corporation,
the project lender. CEA and CCC filed a separate suit against the company
which, as amended, seeks damages for breach of contract, negligent design
and construction, negligent misrepresentation, fraud and tortious
interference with the contract of surety. The two suits, along with a
third action commenced by CEA and CCC against the company's surety, the
Insurance Company of North America, have been consolidated. Documents
produced by CEA and CCC during the course of discovery allege claims at
an amount from approximately $10 million to approximately $35 million.
However, the construction contract contains a provision limiting damages
to the value of the contract (a net of approximately $10 million) which
the company would seek to have specifically enforced.
In late 1994, both CEA and CCC filed for protection from creditors under
Chapter 11 of the United States Bankruptcy Code. In January 1995, the
Bankruptcy Court entered an order approving non-binding mediation of the
dispute with the company.
As a result of the mediation, CEA, CCC and the company have reached an
agreement in principle setting forth the terms of a full and final
settlement of the dispute. The settlement is subject to (i) negotiation
of a definitive settlement agreement signed by the parties, (ii) approval
of the Bankruptcy Court and (iii) payment by the company of $2.8 million.
The company's contribution to the settlement will be charged against the
previously established reserve for discontinued operations.
Other claims and assertions made against the company will be resolved, in
the opinion of management, without material additional charges to
earnings.
The company has asserted claims that management believes to be
meritorious, but no estimate can be made at present of the timing or the
amount of recovery.
<PAGE> -11-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(4) Discontinued Operations
In December, 1987, Dravo's Board of Directors approved a major
restructuring program which concentrated the company's future direction
exclusively on opportunities involving its natural resources business.
The plan included the sale or other disposition of the former Engineering
and Construction segment.
The remaining discontinued operations' assets and liabilities at March 31,
1995 and December 31, 1994 relate to non-cancelable leases, insurance,
environmental, legal and other matters associated with exiting the
engineering and construction business and are presented below:
<TABLE>
<CAPTION>
($ in 000's) March 31, December 31,
1995 1994
<S> <C> <C>
Current assets:
Accounts and retainers receivable $ -- $ 24
Total current assets -- 24
Accounts and retainers receivable 444 444
Other 5,125 5,121
Total assets $ 5,569 $ 5,589
Current liabilities:
Accounts and retainers payable $ 72 $ 63
Accrued loss on leases 2,305 2,315
Other 7,345 11,193
Total current liabilities 9,722 13,571
Accrued loss on leases 5,083 5,632
Other 7,504 8,378
Total liabilities $ 22,309 $ 27,581
Net liabilities and accrued loss
on leases of discontinued operations $(16,740) $(21,992)
</TABLE>
<PAGE> -12-
DRAVO CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(5) Pro forma Information
The company completed a transaction on December 30, 1994 in which it sold
to Martin Marietta Materials, Inc. (Martin Marietta), effective January
3, 1995, substantially all the assets of its construction aggregates
business. Assets sold included the assets, properties and leases of
Dravo Basic Materials Company, Inc. (DBM), a wholly-owned subsidiary of
the company, and Atchafalaya Mining Company, Inc. (AMC), a wholly-owned
subsidiary of DBM, used in the production, marketing, distribution and
sale of various aggregate products. Also sold was the capital stock of
Dravo Bahama Rock Limited (DBR), a wholly-owned foreign subsidiary of
DBM.
Proforma data is provided below for comparative purposes only and does
not purport to be indicative of the results which actually would have
been obtained if the disposition had been effected on the pro forma
dates, or other results which may be obtained in the future.
The following pro forma statement of operations presents the results of
operations assuming the disposition had been completed as of the
beginning of 1994. Adjustments have been made to exclude the results of
DBM, to decrease interest expense for loans prepaid in early 1995 from
the sale proceeds, and to record interest income at overnight investment
rates for cash received in excess of liabilities paid.
<TABLE>
<CAPTION>
($ in 000's, except per share data)
Quarters ended March 31,
1995 1994
Actual Pro Forma
<S> <C> <C>
Revenue $ 33,905 $ 30,063
Gross profit 8,701 6,829
Selling, general and
administrative expenses 5,191 4,446
Other income 488 835
Interest expense (1,273) (1,127)
Earnings (loss) before taxes 2,725 2,091
Income tax expense 190 146
Earnings (loss) from
continuing operations 2,535 1,945
Earnings (loss) per share,
continuing operations 0.13 0.09
</TABLE>
<PAGE> -13-
DRAVO CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of Financial
Condition and Results of Operations
The company completed a transaction on December 30, 1994 in which it sold
to Martin Marietta Materials, Inc., effective January 3, 1995,
substantially all the assets of its construction aggregates business,
Dravo Basic Materials Company, Inc. (DBM). As a result, the company has
one principal operating subsidiary, Dravo Lime Company, a major U. S. lime
producer.
The statement of operations for the first quarter ended March 31, 1994
includes DBM; a period in which DBM generated nearly 50 percent of the
company's revenue but only 10 percent of its gross profit. For a
meaningful comparison, the current year's results should be compared to
last year's results on a pro forma basis. The pro forma results assume
the DBM sales transaction occurred prior to 1994 and are presented in Note
5 of the Notes to Consolidated Financial Statements.
Net earnings for the first quarter of 1995 were $1.9 million, or 13 cents
per common share, compared to a $2.6 million loss, or $.22 per share, last
year. Last year's results included a $1.4 million charge, nine cents per
share, related to adoption of Statement of Financial Accounting Standards
No. 112, "Employers' Accounting for Postemployment Benefits". While
revenue was down $23.8 million from last year's actual that included DBM,
lime revenue increased $3.8 million from last year. Demand for lime from
electric utilities and key non-utility markets, particularly steel and
pulp & paper, was robust. Lime gross profit increased $1.1 million, or
15 percent, on the strong demand. Also contributing to the net earnings
improvement was a substantial reduction in interest expense as the company
used the proceeds from the DBM sale to reduce debt.
Significant changes in the company's balance sheet from year-end 1994 to
March 31, 1995 occurred as a result of the collection of $120.5 million
on January 3, 1995 from the sale of DBM's assets. The proceeds were used
to reduce debt over $85 million and to satisfy $15 million of DBM's
accounts payable. Property, plant and equipment increased over $13
million during the first quarter, primarily due to construction of two new
lime kilns and related material handling equipment at the company's Black
River lime facility in northern Kentucky.
The expansion of the Black River facility is nearly complete. Both kilns
have started initial production and are going through a shake-down period.
The kilns are expected to be at full capacity during the second quarter,
increasing the company's lime production capability by 700,000 tons-per-
year.
<PAGE> -14-
DRAVO CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
On May 11, 1995, the company reached an agreement in principle to settle
a long-standing dispute with Continental Energy Associates (CEA), the
owner of a coal gasification facility built by Dravo in Hazleton,
Pennsylvania. Currently in reorganization, CEA has committed as part of
this agreement in principle to seek approval for the settlement from the
U. S. Bankruptcy Court. After it is approved the settlement would resolve
all disputes between the various parties involved in the matter. The
agreement calls for the company to make a $2.8 million lump sum payment
to CEA. The payment will be charged against the previously established
reserve for discontinued operations and, therefor, will not impact current
earnings.
<PAGE> -15-
DRAVO CORPORATION AND SUBSIDIARIES
PART II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following is filed as an exhibit to Part I of
this Form 10-Q:
Exhibit No. 11 - Statement re computation of
per share earnings.
(b) Reports on Form 8-K
On January 17, 1995 the company filed a Form 8-K reporting on (a)
the sale of substantially all the assets of Dravo Basic Materials
Company, Inc. (DBM) and (b) a noncompetition and nondisclosure
agreement related to the DBM sale. A pro forma balance sheet at
September 30, 1994, pro forma statements of operations for the
nine months ended September 30, 1994 and 12 months ended December
31, 1993 and explanatory notes to the pro forma financial
statements were included in the Form 8-K.
<PAGE> -16-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DRAVO CORPORATION
(Registrant)
Date: May 12, 1995 /s/ERNEST F. LADD III
Ernest F. Ladd III
Executive Vice President and
Chief Financial Officer
Date: May 12, 1995 /s/LARRY J. WALKER
Larry J. Walker
Controller
(Principal Accounting Officer)
<PAGE> -17-
Exhibit 11. Statement Re Computation of Per Share Earnings
<TABLE>
<CAPTION>
(In 000's, except per share data)
Quarters ended March 31,
Primary 1995 1994
<S> <C> <C>
Earnings:
Earnings (loss) before cumulative effect of
accounting change $ 2,535 $(1,271)
Deduct dividends on preference stock 634 637
Earnings (loss) before cumulative effect
of accounting change 1,901 (1,908)
Cumulative effect of accounting change -- (1,361)
Net earnings (loss) applicable to common stock $ 1,901 $(3,269)
Shares:
Weighted average number of common
shares outstanding 14,853 14,852
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the average market
price for the period) 59 --(1)
Weighted average number of shares
outstanding, as adjusted 14,912 14,852
Primary earnings (loss) per share:
Operations $ 0.13 $ (0.13)
Cumulative effect of accounting change -- (0.09)
Net earnings (loss) per share $ 0.13 $ (0.22)
Fully diluted
Earnings:
Net earnings (loss) $ 2,535 $(2,632)
Deduct dividends on preference stock (2) 634 637
Net earnings applicable to common stock $ 1,901 $(3,269)
Shares:
Weighted average number of common
shares outstanding 14,853 14,852
Dilutive effect of outstanding
options and rights (as determined
by the application of the treasury
stock method at the higher of the
closing or the average market price
for the period) 59 --(1)
Weighted average number of shares
outstanding, as adjusted 14,912 14,852
Fully diluted earnings (loss) per share $ 0.13 $ (0.22)
</TABLE>
<PAGE> -18-
Exhibit 11. Statement Re Computation of Per Share Earnings (continued)
<TABLE>
<CAPTION>
(In 000's, except per share data)
Quarters ended March 31,
Additional Fully Diluted Computation (3) 1995 1994
<S> <C> <C>
Earnings:
Net earnings (loss) $ 2,535 $(2,632)
Shares:
Weighted average number of common shares
outstanding 14,853 14,852
Dilutive effect of outstanding options and
rights (as determined by the application of
the treasury stock method at the higher of
the closing or average market price for
the period) 59 83
Shares issuable from assumed exercise of
convertible preference stock 1,688 1,702
Weighted average number of shares
outstanding, as adjusted 16,600 16,637
Fully diluted earnings per share $ 0.15 $ (0.16)
(1) The inclusion of outstanding options and rights in the computation would
have an anti-dilutive effect on earnings per share.
(2) The inclusion of preference stock in the fully dilutive computation would
have an anti-dilutive effect on earnings per share.
(3) This calculation is submitted in accordance with Securities Exchange Act
of 1934, Regulation S-K, paragraph 229.601 (b)(11) although it is contrary to
paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result.
</TABLE>
<PAGE> -19-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DRAVO
CORPORATION'S MARCH 31, 1995 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 2,753
<SECURITIES> 0
<RECEIVABLES> 19,219
<ALLOWANCES> 108
<INVENTORY> 13,775
<CURRENT-ASSETS> 39,348
<PP&E> 209,844
<DEPRECIATION> 102,534
<TOTAL-ASSETS> 198,283
<CURRENT-LIABILITIES> 51,009
<BONDS> 0
<COMMON> 14,992
20,000
27
<OTHER-SE> 62,956
<TOTAL-LIABILITY-AND-EQUITY> 198,283
<SALES> 33,905
<TOTAL-REVENUES> 33,905
<CGS> 25,204
<TOTAL-COSTS> 25,204
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,273
<INCOME-PRETAX> 2,725
<INCOME-TAX> 190
<INCOME-CONTINUING> 2,535
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,535
<EPS-PRIMARY> .13
<EPS-DILUTED> .13
</TABLE>
