=Babcock & Wilcox (BW) : provides Q1 update, withdraws 2018 guidance for the Renewable segment

Babcock & Wilcox Enterprises also announces CFO retirement with Q1 update, withdraws 2018 guidance for the Renewable segment  

• Effective March 21, 2018, the co appointed Robert Caruso, Director of Alvarez & Marsal N Am, to serve as Chief Implementation Officer. CFO Jenny Apker will retire as CFO on June 1, 2018 for health-related reasons. Apker is expected to continue to work as a non-executive employee until August 31, 2018 to assist in the CFO transition. Joel Mostrom, a Senior Director of Alvarez & Marsal North America will assume the role of interim CFO on June 1, 2018. B&W expects to begin a search for a permanent CFO in the second half of this year.
• Q1/2018 update: As B&W has worked to progress its Renewable energy projects in Europe, management, with review from the Chief Implementation Officer, preliminarily identified ~$51 million of additional estimated costs to complete the projects. The largest portion of the additional estimated costs are related to the project with the previously announced steel beam failure. Co intends to seek not only insurance recoveries, but also plans to seek additional relief from its customers and will pursue other claims where appropriate and available. There can be no assurance as to recovery amounts that B&W may realize. The $51 million of additional renewable project costs do not take into account any potential recoveries to mitigate these losses.
• Given additional costs, B&W is withdrawing its 2018 guidance for the Renewable segment and is updating its 2018 consolidated adjusted EBITDA guidance of $20-40 million. Beginning with Q1 release, co will provide segment level EBITDA that will allow investors to better assess segment performance.
• B&W continues to make progress with the possible divestitures of its MEGTEC and Universal businesses. In addition, the Company continues to evaluate potential options regarding non-core assets.