Babcock & Wilcox Enterprises (NYSE:BW) -9.6% premarket after cutting its 2016 earnings guidance and saying it will cut 200 jobs as part of a restructuring of its coal-fired power generation business.
BW says its restructuring plan is a proactive measure to prepare for a projected reduction in U.S. coal generation, as it anticipates U.S. coal customer demand to fall 15%-20% by 2017 or 2018.
As a result, BW now expects FY 2016 adjusted EPS of $0.63-$0.83, vs. prior guidance of $1.25-$1.45 and analyst consensus estimate of $1.38, on revenues of $1.8B, unchanged from prior guidance.
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