Clapper, Patti, Schweizer and Mason

The company moved its corporate headquarters to Houston from New Orleans in February 2006. Earlier this week, McDermott announced a 19 percent increase in quarterly net income to $177.5 million from $149.4 million a year ago. Revenue rose 26 percent to $1.8 billion from $1.4 billion, stemming primarily from offshore oil and gas construction Babcock & Wilcox manufactured boilers. Babcock & Wilcox used asbestos to insulate its boilers for decades until it was phased out during the 1970s. McDermott acquired Babcock & Wilcox in 1979. After McDermott acquired Babcock & Wilcox, it was faced with asbestos claims that kept coming. The company spent more than $1.6 billion to settle more than 300,000 claims. Babcock & Wilcox filed for Chapter 11 bankruptcy protection in February 2000 in order to handle the claims apart from McDermott. Babcock & Wilcox and claimants, including mesothelioma victims, reached a settlement in February 2006 that involved the company putting $1.8 billion in assets in a trust to resolve another 222,000 claims. There is no cure for mesothelioma, and asbestos attorneys negotiated a settlement that would provide for future claims to get a fair settlement. Babcock & Wilcox then emerged from bankruptcy and was consolidated back into McDermott as a subsidiary. In September 2006, McDermott consolidated its BWX Technologies subsidiary with Babcock & Wilcox, combining nuclear and fossil power products.