BOISE, Idaho, Oct. 2 /PRNewswire-FirstCall/ -- Washington Group International announced today that Westmoreland Resources, Inc. redeemed Washington Group's 20 percent interest in Westmoreland Resources on Sept. 28 for a cash payment of $13.5 million. As a result, Washington Group will recognize an after-tax gain of approximately $5.0 million, or approximately $0.16 per diluted share, in the third quarter ended Sept. 28, 2007.
Westmoreland Resources, which owns the Absaloka coal mine, 65 miles southeast of Billings, Mont., is now wholly owned by Westmoreland Coal Company, Colorado Springs, Colo.
Washington Group had acquired equity in Westmoreland Resources in 1978. Washington Group operated Westmoreland's Absaloka mine from its opening in 1974 to March 2007, when Westmoreland Resources assumed mining activities pursuant to an agreement with Washington Group.
Washington Group International provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation and water resources. For more information, visit http://www.wgint.com/.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2006.
