BWXT nuclear operations profit benefits from 'absence of missile tube charges'

By Marjorie Censer / August 6, 2019 at 9:47 AM

BWX Technologies today said sales in its nuclear operations group during the most recent quarter hit a record-high $358 million, up nearly 8% from the same three-month period a year earlier.

The company said it benefited from an increase in production volume and the acceleration of long-lead material purchases.

The unit, which includes the company's naval work, reported quarterly profit of $75 million, up 12% from the prior year. BWXT attributed the gains to "higher volume and the absence of missile tube charges."

Earlier this year, the company said it had a $29 million reserve for the repairs.

In a call with analysts this morning, Rex Geveden, BWXT's chief executive, said the company plans to have the "vast majority" of missile tube repair work complete by the end of this year.

"There's a couple of repairs that bleed over into 2020," he added.

A year ago, the contractor said it had identified welding problems in missile tubes slated for the Columbia-class submarine and disclosed the situation to the Navy and Columbia-class prime contractor General Dynamics Electric Boat.