SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)..........April 15, 1999
STONE & WEBSTER, INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 1-1228 13-5416910
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Number)
245 Summer Street, Boston, MA 02210
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 589-5111
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Form 8-K 2 Stone & Webster, Incorporated
Item 5. Other Events.
The text of registrant's press release dated April 15,1999 relating to the
preliminary report of first quarter results is included in Exhibit 99 to this
Form 8-K and is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
(99) Text of registrant's press release dated April 15, 1999
<PAGE>
Form 8-K Stone & Webster, Incorporated
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.
STONE & WEBSTER, INCORPORATED
By: /S/ THOMAS L. LANGFORD
Thomas L. Langford
Executive Vice President
And Chief Financial Officer
Date: April 15, 1999
<PAGE>
Form 8-K 4 Stone & Webster, Incorporated
EXHIBIT
Exhibit (99) Text of registrant's press release dated April 15, 1999 -
For Immediate Release For Information Contact
Thomas L. Langford
(617) 589-7424
STONE & WEBSTER ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS
BOSTON, MA, April 15, 1999 - Stone & Webster, Incorporated (NYSE:SW) announced
that, based on preliminary analysis of its results for the quarter ended March
31, 1999, it expects to report an operating loss for the quarter. Based upon a
reevaluation of the costs to complete two projects, the Company now expects to
report an operating loss of approximately $4.50 per share for the first quarter.
"The quarter's results reflect provisions of approximately $74 million to cover
the anticipated costs of completing two international projects" said Kerner
Smith, Chairman, President and Chief Executive Officer. "We had believed that
the provisions made at the end of 1998 would be sufficient, however, during the
first quarter of 1999 the continuing effects of the delay and disruption
resulting from changes in work scope and jobsite conditions, and the rework of
certain deficiencies, principally with vendor supplied equipment, have exposed
the Company to increased costs and have led to these results. Without these
provisions, earnings would have been approximately $.25 per share, which is
within the range of analysts' estimates for the quarter."
These statements regarding estimated results are preliminary. The Company
expects to announce its final results on April 27, 1999.
Business Outlook
"While the quarter's financial results are extremely disappointing to the
Company's management, its employees and its shareholders, the two projects which
have severely impacted what otherwise would have been positive operating results
from our engineering and construction business should be essentially complete by
the third quarter of 1999," Mr. Smith said. "We expect the improved margins
included in our substantial backlog of work to be performed, and our continuing
drive to reduce costs and operating expenses, to produce improved results in the
second half of this year. In addition, we intend to aggressively pursue recovery
of the extra costs incurred in completing the projects which have negatively
impacted our operating results. The Company's expectations are that, excluding
the provisions mentioned above, earnings per share for the year would have been
approximately $2.13 per share, which is consistent with the First Call analysts'
estimates."
Company Background
Stone & Webster is a global leader in engineering, construction and consulting
for power, process, environmental/infrastructure and industrial markets.
Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: Any forward-looking statements made in this release represent management's
best judgment as to what may occur in the future. However, the Company's actual
results for the current and future fiscal periods and other corporate
developments will depend upon a number of economic, competitive and other
factors including some of which will be outside the control of the Company. Such
factors could cause the Company's actual results for future periods to differ
materially from those expressed in any forward looking statements made in this
release.
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