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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: August 6, 1999
MORRISON KNUDSEN CORPORATION
Commission File Number 1-12054
A Delaware corporation
IRS Employer Identification No. 33-0565601
MORRISON KNUDSEN PLAZA, BOISE, IDAHO 83729
208/386-5000
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Item 5. Other Material Important Events.
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On August 6, 1999, the Company announced that Ambrose L. Schwallie has been
elected executive vice president of the Company and named president and chief
executive officer of the Company's Westinghouse Government Services Group. (See
the attached press release dated August 6, 1999 filed as Exhibit 99.1 hereto and
incorporated herein by this reference.)
Signature
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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.
MORRISON KNUDSEN CORPORATION
/s/ Stephen G. Hanks
August 13, 1999 By: _________________________________________
Stephen G. Hanks
Executive Vice President,
Chief Legal Officer and Secretary
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EXHIBIT 99.1
[ATTACHED]
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[LETTERHEAD APPEARS HERE]
August 6, 1999
Ambrose L. Schwallie Elected Executive Vice President of
Morrison Knudsen Corporation and Named President and CEO of
MK's Westinghouse Government Services Group
BOISE - Ambrose L. Schwallie, a 27-year veteran of the nuclear industry,
has been elected executive vice president of Morrison Knudsen Corporation and
named president and chief executive officer of MK's Westinghouse Government
Services Group, replacing James L. Gallagher, who will retire September 1, 1999.
Schwallie will report to Thomas H. Zarges who continues his position as
Chairman, Westinghouse Government Services Group.
Dennis R. Washington, MK chairman, president and chief executive officer
announced Schwallie's appointment.
"In his new role, Schwallie will energize the group into the preeminent
provider of management, operations and environmental services to the United
States Departments of Energy and Defense," said Washington. "He also will
assure that the complementary talents and technical expertise of MK,
Westinghouse and BNFL are fully utilized to serve this market."
Since 1991, Schwallie has served as president of the Westinghouse Savannah
River Company that operates the Savannah River Site in South Carolina for the
Department of Energy. Joseph J. Buggy, formerly executive vice president of the
Westinghouse Savannah River Company, has been promoted to fill Schwallie's
position as president of WSRC.
MK (as majority owner) and BNFL Nuclear Services, Inc. acquired the
Westinghouse Government Services Group, in March from CBS.
"The combined strengths of MK, BNFL and the Westinghouse Government
Services Group create a powerful new presence in the nuclear-services industry,"
said Washington. "Ambrose Schwallie has the leadership skills and understanding
of our government clients' needs to help drive our growth in the very important
DOE and DOD markets."
Washington said that Schwallie has established one of the safest and most
disciplined nuclear operations in the country at the Savannah River Site where
he has directed some 12,000 employees engaged in environmental, remediation
maintenance of the nation's nuclear weapons stockpile, and support of the DOE's
nonproliferation program.
"His keen understanding of the market and his record of operational
achievement make him a perfect fit for this job," said Zarges. "His ability to
couple that operational talent with MK's extensive
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project management capability and BNFL's nuclear technology expertise will
position our business well for growth in the coming years."
Zarges also said that Gallagher, a 36-year Westinghouse veteran, "provided
invaluable insight during the initial period of the transition and integration
of the MK, BNFL and Westinghouse organizations."
Since joining Westinghouse in 1972, Schwallie's assignments have included
manager of core design for the Clinch River Breeder Reactor in Tennessee;
engineering manager for the Advanced Energy Systems Division; and executive vice
president of the Westinghouse Savannah River Company prior to being named
president of the company.
Buggy became executive vice president of Westinghouse Savannah River
Company in 1991. He previously served as president of the West Valley Nuclear
Services Company, a Westinghouse subsidiary engaged in the cleanup of a former
commercial nuclear fuel reprocessing facility for the DOE in western New York.
He joined Westinghouse in 1967 from the U.S. Navy's nuclear submarine program
and has held a wide range of management positions in nuclear, solar and other
energy programs.
In addition to the Savannah River Site and the West Valley Demonstration
Project, the Westinghouse Government Services Group has DOE operations contracts
at the Waste Isolation Pilot Plant in New Mexico and is involved in the cleanup
of the Rocky Flats Environmental Technology Site near Denver.
Other businesses include a contract from the U.S. Army to build and operate
a chemical-weapons-destruction facility in Anniston, Alabama; the Westinghouse
Electro-Mechanical Division - located near Pittsburgh, Pennsylvania - which
provides reactor coolant pumps and other manufactured products primarily for the
U.S. Navy and the commercial nuclear industry; Westinghouse Safety Management
Solutions - based in Aiken, South Carolina - which is a full-service provider of
safety management services and operations support for DOE, DOD and commercial
customers; and the Westinghouse Government Technical Services Division - based
in Albuquerque, New Mexico - which provides a range of products and technical
support services for National Laboratory operations and the hazardous material
transportation and storage industry.
Morrison Knudsen Corporation (MK-NYSE) has 23,500 employees at work in more
than 35 countries serving the nuclear-services, government, environmental,
energy, heavy-civil, industrial, mining, process, transportation and water-
resources markets as an engineer, constructor and program manager.
# # # #
This news release contains "forward-looking statements" within the meaning of
the private securities litigation reform act of 1995, which are identified by
the use of forward-looking terminology such as "may", "will", "could", "should",
"expect", "anticipate", "intend", "plan", "estimate", or "continue" or the
negative thereof or other variations thereof. Such forward-looking statements
are necessarily based on various assumptions and estimates and are inherently
subject to various risks and uncertainties, including risks and uncertainties
relating to the possible invalidity of the underlying assumptions and estimates
and possible changes or developments in social, economic, business industry,
market, legal, and regulatory circumstances and conditions and actions taken or
omitted to be taken by third parties, including the corporation's customers,
suppliers, business partners, and competitors and legislative, regulatory,
judicial, and other governmental authorities and officials.
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