GTS Duratek posts loss of 6 cents a share Waste disposal

August 07, 1998|By Greg Schneider | Greg Schneider,SUN STAFF

GTS Duratek, a Columbia-based hazardous waste disposal company, reported a net loss yesterday of $419,000, or 6 cents a share, for the year's second quarter.

That compared with a gain of $1.036 million, or 5 cents a share, in the second quarter of 1997.

The company's stock tumbled this week after GTS Duratek announced last Friday that the second-quarter numbers would show a loss. Shares rose $1.3125 to $8.875 yesterday. After trading as high as $12 on July 22, they had dropped to less than $7 Monday in the wake of the warning.

Overall revenue was up slightly in the quarter, to $38.8 million from $38 million in the 1997 quarter.

The company said the loss resulted from:

One-time costs on a recently completed contract for sizing up the hazardous waste situation at Maine Yankee Nuclear Power Plant.

Unexpectedly high costs on recent contract proposals for a pair of nuclear plant decommissioning projects.

The decision to reschedule work at the company's radioactive-waste treatment facility in Oak Ridge, Tenn..

One-time charges from restructuring overall operations at the Oak Ridge plant.

Robert E. Prince, the company's president and chief executive officer, said GTS Duratek absorbed the extra costs on the Maine Yankee and decommissioning contracts "to advance the company's technical reputation and qualifications for the emerging multimillion-dollar nuclear facility decommissioning market."

Company officials said the streamlining at Oak Ridge will save more than $3.5 million a year.

Pub Date: 8/07/98

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