NEW YORK (AP) — Shares of McDermott International Inc. tumbled Thursday after the offshore drilling platform builder reported lower-than-expected first-quarter profit.
THE SPARK: McDermott said late Wednesday that it made $20.6 million, or 9 cents per share, down from $62.8 million, or 26 cents per share, in the same quarter of 2012. Revenue rose 11 percent to $807.5 million.
Analysts, on average, expected 14 cents per share on $749.5 million in revenue, according to FactSet.
THE BIG PICTURE: The Houston-based company's profit drop stemmed from operating losses in its Middle East and Atlantic businesses.
Middle East operating losses totaled about $18.5 million related to higher costs for a nearly complete project, while Atlantic operating losses totaled about $16.4 million from lower marine asset utilization.
Meanwhile the company's revenue got a boost from an increase of about $48.6 million at the Atlantic business from higher fabrication activity, along with higher revenue on the Asia Pacific and Middle East businesses.
THE SHARES: Down $1.59, or 14.4 percent, to $9.44 in afternoon trading, after dropping as low as $9.14 earlier in the session and coming within a dime of their 52-week low.
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