GTS Duratek has loss of 6 cents per share

Maryland Watch

August 01, 1998

GTS Duratek said yesterday that it will report a second-quarter loss of about 6 cents per share, falling far short of analysts' expectations of a gain of 10 cents to 12 cents per share.

The Columbia hazardous waste-disposal company attributed the loss to the postponement of a project at its Oak Ridge, Tenn., facility from the second quarter to the third quarter; high costs associated with projects, including one at the Maine Yankee Nuclear Power Plant; and the cost of streamlining the Oak Ridge facility.

Explaining the Oak Ridge project's postponement, Robert E. Prince, president and chief executive officer, said: "We rescheduled the metal-melt campaign to the third quarter in order to complete operational improvements. Although it is unfortunate that this decision had an impact on the quarter, it does not have any effect on the year as a whole." Robert F. Shawver, executive vice president and chief financial officer, said cost reductions adopted at Oak Ridge last month will save $3.5 million a year.

Duratek shares rose 12.5 cents to $9.75 yesterday. The announcement was made after markets closed.

Pub Date: 8/01/98

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