##### 



Exhibit 99.1
 
 INVESTOR CONTACT
 MEDIA CONTACT
 SHAW GROUP ANNOUNCES RECORD EARNINGS AND BACKLOG
FOR THE THIRD QUARTER FISCAL 2007
 
    
    Diluted earnings per share rise to $0.67
    
    Backlog totals $13.3 billion
    
    Operating cash flow remains strong




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##### 



www.shawgrp.com www.shawgrp.com
 Calculation of EBITDA




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##### 



www.shawgrp.com
 The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain
forward-looking statements. The statements contained herein that are not historical facts
(including without limitation statements to the effect that the Company or its management
believes, expects, anticipates, plans or other similar expressions) and statements related
to revenues, earnings, backlog, or other financial information or results are forward-looking
statements based on the Companys current expectations and beliefs concerning future developments
and their potential effects on the Company. There can be no assurance that future developments
affecting the Company will be those anticipated by the Company. These forward-looking statements
involve significant risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such risks or
uncertainties materialize, or should any of our assumptions prove incorrect, actual results may
vary in material respects from those projected in the forward-looking statements. The Company
undertakes no obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such forward-looking
statements can be found in the Companys reports and registration statements filed with the
Securities and
Exchange Commission, including its Form 10-K and Form 10-Q reports, and on the Companys Web site
under the heading Forward-Looking Statements. These documents are also available from the
Securities and Exchange Commission or from the Investor Relations department of Shaw. For more
information on the company and announcements it makes from time to time on a regional basis, visit
our Web site at www.shawgrp.com.
 # # #




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##### 



THE SHAW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
 Three Months Ended May 31,
    
    
    Nine Months Ended May 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues
    
    $
    1,601,436
    
    
    $
    1,226,784
    
    
    $
    4,080,347
    
    
    $
    3,601,077Cost of revenues
    
    
    1,465,940
    
    
    
    1,192,869
    
    
    
    3,827,521
    
    
    
    3,361,165Gross profit
    
    
    135,496
    
    
    
    33,915
    
    
    
    252,826
    
    
    
    239,912General and administrative expenses
    
    
    68,455
    
    
    
    52,248
    
    
    
    204,073
    
    
    
    162,052Operating income (loss)
    
    
    67,041
    
    
    
    (18,333
    )
    
    
    48,753
    
    
    
    77,860Interest expense
    
    
    (3,079
    )
    
    
    (4,897
    )
    
    
    (10,859
    )
    
    
    (13,261
    )Interest expense on Japanese
Yen-denominated bonds
including accretion and
amortization
    
    
    (8,543
    )
    
    
    
    
    
    
    (21,992
    )
    
    
    Interest income
    
    
    3,006
    
    
    
    794
    
    
    
    7,896
    
    
    
    4,273Foreign currency translation gains
on Japanese
Yen-denominated bonds, net
    
    
    15,457
    
    
    
    
    
    
    
    18,448
    
    
    
    Other foreign currency translation
gains (losses), net
    
    
    (301
    )
    
    
    (1,735
    )
    
    
    (5,007
    )
    
    
    (918
    )Other income (expense), net
    
    
    384
    
    
    
    589
    
    
    
    (1,019
    )
    
    
    (291
    )6,924
    
    
    
    (5,249
    )
    
    
    (12,533
    )
    
    
    (10,197
    )Income (loss) before income taxes,
minority interest, earnings
(losses) from unconsolidated
entities and loss from and
impairment of discontinued
operations
    
    
    73,965
    
    
    
    (23,582
    )
    
    
    36,220
    
    
    
    67,663Provision (benefit) for income taxes
    
    
    15,707
    
    
    
    (12,238
    )
    
    
    18,013
    
    
    
    19,151Income (loss) before minority
interest, earnings (losses) from
unconsolidated entities and loss
from and impairment of
discontinued operations
    
    
    58,258
    
    
    
    (11,344
    )
    
    
    18,207
    
    
    
    48,512Minority interest
    
    
    (4,357
    )
    
    
    (4,207
    )
    
    
    (12,868
    )
    
    
    (10,154
    )Income from 20% Investment in
Westinghouse, net of
income taxes
    
    
    1,625
    
    
    
    
    
    
    
    1,457
    
    
    
    Earnings (losses) from
unconsolidated entities, net of
income taxes
    
    
    (787
    )
    
    
    (463
    )
    
    
    (25,596
    )
    
    
    674Income (loss) from continuing
operations
    
    
    54,739
    
    
    
    (16,014
    )
    
    
    (18,800
    )
    
    
    39,032Loss from and impairment of
discontinued operations, net of
income taxes
    
    
    (121
    )
    
    
    (659
    )
    
    
    (3,156
    )
    
    
    (1,154
    )Net income (loss)
    
    $
    54,618
    
    
    $
    (16,673
    )
    
    $
    (21,956
    )
    
    $
    37,878Net income (loss) per common share:Basic:Income (loss) from continuing
operations
    
    $
    0.68
    
    
    $
    (0.20
    )
    
    $
    (0.24
    )
    
    $
    0.49Loss from and impairment of
discontinued operations,
net of income taxes
    
    
    (0.00
    )
    
    
    (0.01
    )
    
    
    (0.04
    )
    
    
    (0.01
    )Net income (loss)
    
    $
    0.68
    
    
    $
    (0.21
    )
    
    $
    (0.28
    )
    
    $
    0.48Diluted:Income (loss) from continuing
operations
    
    $
    0.67
    
    
    $
    (0.20
    )
    
    $
    (0.24
    )
    
    $
    0.48Loss from and impairment of
discontinued operations,
net of income taxes
    
    
    (0.00
    )
    
    
    (0.01
    )
    
    
    (0.04
    )
    
    
    (0.01
    )Net income (loss)
    
    $
    0.67
    
    
    $
    (0.21
    )
    
    $
    (0.28
    )
    
    $
    0.47




---



##### 



THE SHAW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
 May 31, 2007(Unaudited)
    
    
    August 31, 2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    179,963
    
    
    $
    154,837Restricted and escrowed cash
    
    
    38,178
    
    
    
    43,409Accounts receivable, including retainage, net
    
    
    707,485
    
    
    
    740,920Inventories
    
    
    153,187
    
    
    
    101,337Costs and estimated earnings in excess of billings on uncompleted
contracts, including claims
    
    
    403,048
    
    
    
    455,819Deferred income taxes
    
    
    95,476
    
    
    
    83,085Prepaid expenses and other current assets
    
    
    47,867
    
    
    
    99,253Total current assets
    
    
    1,625,204
    
    
    
    1,678,660Investments in and advances to unconsolidated entities, joint ventures
and limited partnerships
    
    
    40,182
    
    
    
    52,048Investment in Westinghouse
    
    
    1,093,478
    
    
    
    Property and equipment, less accumulated depreciation of $190,541 at
May 31, 2007 and $166,220 at August 31, 2006
    
    
    198,188
    
    
    
    175,431Goodwill
    
    
    512,360
    
    
    
    506,592Other assets
    
    
    141,114
    
    
    
    116,403$
    3,610,526
    
    
    $
    2,529,134LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    491,312
    
    
    $
    483,002Accrued liabilities
    
    
    315,389
    
    
    
    211,162Advanced billings and billings in excess of costs and estimated
earnings on uncompleted contracts
    
    
    415,577
    
    
    
    316,674Contract liability adjustments
    
    
    840
    
    
    
    3,361Deferred revenue
    
    
    5,104
    
    
    
    14,772Current maturities of long-term debt
    
    
    8,790
    
    
    
    2,456Short-term revolving lines of credit
    
    
    2,838
    
    
    
    5,526Short term debt
    
    
    3,106
    
    
    
    1,895Current portion of obligations under capital leases
    
    
    2,194
    
    
    
    1,811Total current liabilities
    
    
    1,245,150
    
    
    
    1,040,659Revolving line of credit
    
    
    
    
    
    
    145,517Long-term debt, less current maturities
    
    
    8,566
    
    
    
    24,584Japanese Yen-denominated long-term bonds secured by Investment
in Westinghouse, net
    
    
    1,033,914
    
    
    
    Obligations under capital leases, less current portion
    
    
    2,226
    
    
    
    3,433Deferred income taxes
    
    
    15,333
    
    
    
    18,664Interest rate swap contract on Japanese Yen-denominated bonds
    
    
    1,335
    
    
    
    Other liabilities
    
    
    41,752
    
    
    
    39,662Minority interest
    
    
    19,766
    
    
    
    13,408Shareholders equityPreferred Stock, no par value, 20,000,000 shares authorized;
no shares issued and outstanding
    
    
    
    
    
    
    Common Stock, no par value, 86,676,410 and 85,866,727 shares
issued, respectively; and 81,171,629 and 80,475,928 shares
outstanding, respectively
    
    
    1,097,875
    
    
    
    1,074,106Retained earnings
    
    
    274,006
    
    
    
    295,962Accumulated other comprehensive loss
    
    
    (24,831
    )
    
    
    (25,363
    )Treasury stock, 5,504,781 shares and 5,390,799 shares, respectively
    
    
    (104,566
    )
    
    
    (101,498
    )Total shareholders equity
    
    
    1,242,484
    
    
    
    1,243,207$
    3,610,526
    
    
    $
    2,529,134




---



##### 



REVENUES BY GEOGRAPHY
(In millions)
 Three Months Ended May 31,
    
    2007
    
    
    %
    
    
    2006
    
    
    %United States
    
    $
    1,266.5
    
    
    
    79
    
    
    $
    1,062.0
    
    
    
    87Asia/Pacific Rim
    
    
    62.0
    
    
    
    4
    
    
    
    45.5
    
    
    
    4Middle East
    
    
    214.0
    
    
    
    14
    
    
    
    95.7
    
    
    
    8Canada
    
    
    4.6
    
    
    
    
    
    
    
    3.8
    
    
    
    Europe
    
    
    47.1
    
    
    
    3
    
    
    
    11.2
    
    
    
    1South America and Mexico
    
    
    5.1
    
    
    
    
    
    
    
    6.4
    
    
    
    Other
    
    
    2.1
    
    
    
    
    
    
    
    2.2
    
    
    
    Total revenues
    
    $
    1,601.4
    
    
    
    100
    %
    
    $
    1,226.8
    
    
    
    100
    %
 Nine Months Ended May 31,
    
    2007
    
    
    %
    
    
    2006
    
    
    %United States
    
    $
    3,252.8
    
    
    
    80
    
    
    $
    3,237.1
    
    
    
    90Asia/Pacific Rim
    
    
    161.9
    
    
    
    4
    
    
    
    123.1
    
    
    
    4Middle East
    
    
    514.0
    
    
    
    13
    
    
    
    167.4
    
    
    
    5Canada
    
    
    11.3
    
    
    
    
    
    
    
    10.5
    
    
    
    Europe
    
    
    116.7
    
    
    
    3
    
    
    
    41.9
    
    
    
    1South America and Mexico
    
    
    14.8
    
    
    
    
    
    
    
    13.0
    
    
    
    Other
    
    
    8.8
    
    
    
    
    
    
    
    8.1
    
    
    
    Total revenues
    
    $
    4,080.3
    
    
    
    100
    %
    
    $
    3,601.1
    
    
    
    100
    %
 BACKLOG BY SEGMENT
(In millions)
 May 31,
    
    
    
    
    
    
    August 31,2007
    
    
    %
    
    
    2006
    
    
    %Fossil and Nuclear
    
    $
    5,549.1
    
    
    
    42
    
    
    $
    3,238.4
    
    
    
    35E&I
    
    
    2,740.9
    
    
    
    21
    
    
    
    2,765.1
    
    
    
    30E&C
    
    
    2,457.1
    
    
    
    18
    
    
    
    1,412.3
    
    
    
    16Maintenance
    
    
    1,880.1
    
    
    
    14
    
    
    
    1,250.9
    
    
    
    14F&M
    
    
    701.4
    
    
    
    5
    
    
    
    408.9
    
    
    
    5Total backlog
    
    $
    13,328.6
    
    
    
    100
    %
    
    $
    9,075.6
    
    
    
    100
    %




---



##### 



REVENUES AND GROSS PROFIT BY SEGMENT
(In thousands, except percentages)
 Three Months Ended
    
    
    Nine Months EndedMay 31,
    
    
    May 31,2007
    
    
    2006
    
    
    2007
    
    
    2006RevenuesFossil and Nuclear
    
    $
    441,424
    
    
    $
    180,213
    
    
    $
    1,046,184
    
    
    $
    589,816E&I
    
    
    381,146
    
    
    
    513,419
    
    
    
    1,079,831
    
    
    
    1,700,478E&C
    
    
    293,267
    
    
    
    163,615
    
    
    
    753,589
    
    
    
    387,638Maintenance
    
    
    363,197
    
    
    
    296,448
    
    
    
    867,596
    
    
    
    702,186F&M
    
    
    122,402
    
    
    
    73,089
    
    
    
    333,147
    
    
    
    220,959Total revenues
    
    $
    1,601,436
    
    
    $
    1,226,784
    
    
    $
    4,080,347
    
    
    $
    3,601,077Gross profitFossil and Nuclear
    
    $
    33,838
    
    
    $
    (54,569
    )
    
    $
    36,581
    
    
    $
    (20,308
    )E&I
    
    
    29,038
    
    
    
    45,577
    
    
    
    66,647
    
    
    
    168,807E&C
    
    
    25,160
    
    
    
    14,682
    
    
    
    55,713
    
    
    
    15,677Maintenance
    
    
    16,917
    
    
    
    10,625
    
    
    
    13,417
    
    
    
    30,780F&M
    
    
    30,543
    
    
    
    17,600
    
    
    
    80,468
    
    
    
    44,956Total gross profit
    
    $
    135,496
    
    
    $
    33,915
    
    
    $
    252,826
    
    
    $
    239,912Gross profit percentageFossil aned Nuclear
    
    
    7.7
    %
    
    
    (30.3
    %)
    
    
    3.5
    %
    
    
    (3.4
    %)E&I
    
    
    7.6
    %
    
    
    8.9
    %
    
    
    6.2
    %
    
    
    9.9
    %E&C
    
    
    8.6
    %
    
    
    9.0
    %
    
    
    7.4
    %
    
    
    4.0
    %Maintenance
    
    
    4.7
    %
    
    
    3.6
    %
    
    
    1.5
    %
    
    
    4.4
    %F&M
    
    
    25.0
    %
    
    
    24.1
    %
    
    
    24.2
    %
    
    
    20.3
    %Total gross profit percentage
    
    
    8.5
    %
    
    
    2.8
    %
    
    
    6.2
    %
    
    
    6.7
    %




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##### 



The Shaw Group Inc.
Reconciliation of Shaw Consolidated Results to Shaw Excluding Investment in
Westinghouse Segment for the three months ended May 31, 2007
(in millions, except per share data)
 Q3 FY 2007Quarter ended May 31, 2007ActualsWestinghouse
    
    
    ExcludingAs Reported
    
    
    Segment
    
    
    WestinghouseRevenues
    
    $
    1,601.4
    
    
    $
    0.0
    
    
    $
    1,601.4Cost of revenues
    
    
    1,465.9
    
    
    
    0.0
    
    
    
    1,465.9Gross profit
    
    
    135.5
    
    
    
    0.0
    
    
    
    135.5General and administrative expenses
    
    
    68.5
    
    
    
    0.1
    
    
    
    68.4Operating income (loss)
    
    
    67.0
    
    
    
    (0.1
    )
    
    
    67.1Interest expense
    
    
    (3.1
    )
    
    
    0.0
    
    
    
    (3.1
    )Interest expense on JPY-denominated bonds including accretion and amortization
    
    
    (8.5
    )
    
    
    (8.5
    )
    
    
    0.0Interest income
    
    
    3.0
    
    
    
    0.0
    
    
    
    3.0Foreign currency translation gains (losses) on JPY-denominated bonds, net
    
    
    15.4
    
    
    
    15.4
    
    
    
    0.0Other foreign currency transaction gains (losses), net
    
    
    (0.3
    )
    
    
    0.0
    
    
    
    (0.3
    )Other income (expense), net
    
    
    0.4
    
    
    
    0.0
    
    
    
    0.46.9
    
    
    
    6.9
    
    
    
    0.0Income (loss) before income taxes, minority interest, earnings (losses) from
unconsolidated entities and loss from and impairment of discontinued operations
    
    
    73.9
    
    
    
    6.8
    
    
    
    67.1Provision (benefit) for income taxes
    
    
    15.7
    
    
    
    2.7
    
    
    
    13.0Income (loss) before minority interest, earnings (losses) from
unconsolidated entities and loss from and impairment of discontinued operations
    
    
    58.2
    
    
    
    4.1
    
    
    
    54.1Minority interest
    
    
    (4.3
    )
    
    
    0.0
    
    
    
    (4.3
    )Income from 20% Investment in Westinghouse, net of income taxes
    
    
    1.6
    
    
    
    1.6
    
    
    
    0.0Earnings (losses) from unconsolidated entities, net of income taxes
    
    
    (0.8
    )
    
    
    0.0
    
    
    
    (0.8
    )Income (loss) from continuing operations
    
    
    54.7
    
    
    
    5.7
    
    
    
    49.0Loss from and impairment of discontinued operations, net of income taxes
    
    
    (0.1
    )
    
    
    0.0
    
    
    
    (0.1
    )Net income (loss)
    
    $
    54.6
    
    
    $
    5.7
    
    
    $
    48.9Net income (loss) per common share:Basic income (loss) per common share
    
    $
    0.68
    
    
    $
    0.07
    
    
    $
    0.61Diluted income (loss) per common share
    
    $
    0.67
    
    
    $
    0.07
    
    
    $
    0.60Weighted average shares outstanding:Basic:
    
    
    80.1
    
    
    
    80.1
    
    
    
    80.1Diluted:
    
    
    81.9
    
    
    
    81.9
    
    
    
    81.9




---



##### 



Q3 FY 2007
    
    
    Q3 FY 2006Westinghouse
    
    
    Actuals Excluding(in millions)
    
    As Reported
    
    
    Segment
    
    
    Westinghouse
    
    
    ActualsNet Income (Loss)
    
    $
    54.6
    
    
    $
    5.7
    
    
    $
    48.9
    
    
    $
    (16.7
    )Interest Expense
    
    
    11.6
    
    
    
    8.5
    
    
    
    3.1
    
    
    
    4.9Depreciation and Amortization
    
    
    10.1
    
    
    
    
    
    
    
    10.1
    
    
    
    8.3Provision for Income Taxes
    
    
    15.7
    
    
    
    2.7
    
    
    
    13.0
    
    
    
    (12.2
    )Income Taxes on Unconsolidated Subs
    
    
    0.3
    
    
    
    1.1
    
    
    
    (0.8
    )
    
    
    0.2Income Taxes on Discontinued Ops
    
    
    (0.1
    )
    
    
    
    
    
    
    (0.1
    )
    
    
    (0.2
    )EBITDA
    
    $
    92.2
    
    
    $
    18.0
    
    
    $
    74.2
    
    
    $
    (15.7
    )Revenue
    
    
    1,601.4
    
    
    
    N/A
    
    
    
    1,601.4
    
    
    
    1,227.0EBITDA %
    
    
    5.8
    %
    
    
    N/A
    
    
    
    4.6
    %
    
    
    -1.3
    %