The US plant engineering company Babcock & Wilcox (B&W) has announced a strategic realignment of its business in response to higher interest rates and reduced or delayed capital expenditures by its customers. The company plans to focus increasingly on after-market sales across all of its businesses, which include waste-to-energy (wte) technology, emission control, ash handling and cooling technologies, as well as technology and services for conventional thermal power generation plants. The parts and services business offered higher margins and generated a more predictable revenue stream, said CEO Kenneth Young at B&W's third quarter earnings presentation last week. The shift away from new bid projects would also allow the company to realise up to $30m (€28m) in savings as it would reduce the high overheads associated with seeking multiple new-build projects.
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