EX-99.1 2 a6483797ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

CB&I Reports Third Quarter 2010 Results

THE WOODLANDS, Texas--(BUSINESS WIRE)--October 26, 2010--CB&I (NYSE: CBI) today reported net income of $51.8 million, or $0.52 per diluted share, for the third quarter of 2010. Revenue for the quarter was $909.1 million and New Awards totaled $893.1 million. Cash and cash equivalents increased to $361 million as of September 30, up from $300 million at the beginning of the third quarter.

"CB&I is on track to deliver solid earnings for 2010, and is positioned for continued strong performance into 2011," said Philip K. Asherman, President and CEO. "Our end markets, particularly technology, LNG, oil sands, gas processing and the demand for global storage, are fundamentally strong in our key geographic regions."

Earnings Conference Call

CB&I will host a webcast on October 26 at 4:00 p.m. Central time (5:00 p.m. Eastern time) to discuss financial and operating results, and answer questions from investors. The webcast is available at www.CBI.com Investor Relations/Investor Highlights.

About CB&I

CB&I designs, engineers and constructs some of the world’s largest energy infrastructure projects, providing a full spectrum of EPC solutions and proven process technologies. Drawing upon more than a century of experience and the expertise of approximately 16,000 employees worldwide, CB&I safely and reliably executes more than 600 projects a year through its three business sectors: CB&I Lummus builds upstream and downstream oil & gas projects, LNG liquefaction and regasification terminals, and a wide range of other energy related projects; CB&I Steel Plate Structures designs, fabricates and constructs storage tanks and containment vessels and their associated systems for the oil & gas, water & wastewater, mining and nuclear industries; Lummus Technology capitalizes on more than 1,500 patents and patent applications to provide process technologies and catalysts for petrochemical facilities, oil refineries and gas processing plants. For more information, visit www.CBI.com. If you would like to be added to CB&I’s news release email distribution list, visit www.CBI.com/mediacenter/newsreleases.

Forward-Looking Statement

This release contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as “achieve”, “forecast”, “plan”, “propose”, “strategy”, “envision”, “hope”, “will”, “continue”, “potential”, “expect”, “believe”, “anticipate”, “project”, “estimate”, “predict”, “intend”, “should”, “could”, “may”, “might”, or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and “Forward-Looking Statements” described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2009, and any updates to those risk factors or “Forward-Looking Statements” included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.

 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                 
 
Three Months Nine Months
Ended September 30, Ended September 30,
2010 2009 2010 2009
 
Revenue $ 909,099 $ 1,010,401 $ 2,694,467 $ 3,518,490
 
Cost of revenue 789,231 892,866 2,332,016 3,123,927
       
Gross profit 119,868 117,535 362,451 394,563
% of Revenue 13.2 % 11.6 % 13.5 % 11.2 %
Selling and administrative expenses 43,365 48,292 140,955 158,778
% of Revenue 4.8 % 4.8 % 5.2 % 4.5 %
Intangibles amortization 5,832 6,080 17,592 17,553
Other operating (income) expense, net (708 ) (1,461 ) 144 9,875
Equity earnings (6,687 ) (9,852 ) (13,729 ) (28,776 )
       
Income from operations 78,066 74,476 217,489 237,133
% of Revenue 8.6 % 7.4 % 8.1 % 6.7 %
Interest expense (5,739 ) (4,916 ) (12,538 ) (16,019 )
Interest income 1,272 398 3,563 1,190
       
Income before taxes 73,599 69,958 208,514 222,304
 
Income tax expense (19,918 ) (28,070 ) (61,044 ) (85,311 )
       
Net income 53,681 41,888 147,470 136,993
 
Less: Net income attributable to noncontrolling interests   (1,837 )   (1,065 )   (6,108 )   (3,934 )
 
Net income attributable to CB&I $ 51,844   $ 40,823   $ 141,362   $ 133,059  
 
Net income attributable to CB&I per share:
Basic $ 0.53 $ 0.43 $ 1.44 $ 1.40
Diluted $ 0.52 $ 0.42 $ 1.41 $ 1.38
 
Weighted average shares outstanding:
Basic 97,675 95,727 98,448 95,205
Diluted 99,756 97,489 100,445 96,318
                 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
 
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2010 2009 2010 2009
 
% of % of % of % of
NEW AWARDS* Total Total Total Total
CB&I Steel Plate Structures $ 465,050 52 % $ 1,433,383 87 % $ 939,131 40 % $ 1,963,712 73 %
CB&I Lummus 337,985 38 % 109,678 7 % 1,157,722 49 % 491,614 18 %
Lummus Technology   90,097 10 %   97,320 6 %   272,314 11 %   224,775 9 %
Total $ 893,132 $ 1,640,381 $ 2,369,167 $ 2,680,101
 
 
% of % of % of % of
REVENUE Total Total Total Total
CB&I Steel Plate Structures $ 348,662 38 % $ 383,453 38 % $ 1,043,831 39 % $ 1,261,458 36 %
CB&I Lummus 471,075 52 % 528,347 52 % 1,443,024 53 % 1,994,994 57 %
Lummus Technology   89,362 10 %   98,601 10 %   207,612 8 %   262,038 7 %
Total $ 909,099 $ 1,010,401 $ 2,694,467 $ 3,518,490
 
 
% of % of % of % of
INCOME FROM OPERATIONS Revenue Revenue Revenue Revenue
CB&I Steel Plate Structures $ 31,902 9.1 % $ 34,284 8.9 % $ 96,540 9.2 % $ 105,049 8.3 %
CB&I Lummus 19,680 4.2 % 18,551 3.5 % 64,232 4.5 % 75,095 3.8 %
Lummus Technology   26,484 29.6 %   21,641 21.9 %   56,717 27.3 %   56,989 21.7 %
Total $ 78,066 8.6 % $ 74,476 7.4 % $ 217,489 8.1 % $ 237,133 6.7 %
 
 
* New awards represents the value of new project commitments received by the Company during a given period.
   
 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
September 30, December 31,
2010 2009
ASSETS
 
Current assets $ 1,101,897 $ 1,195,578
Equity investments 117,170 132,258
Property and equipment, net 282,856 316,112
Goodwill and other intangibles, net 1,143,373 1,179,600
Other non-current assets 180,652 193,219
   
Total assets $ 2,825,948   $ 3,016,767  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Notes payable $ 526 $ 709
Current maturity of long-term debt 40,000 40,000
Other current liabilities 1,331,566 1,639,166
Long-term debt 80,000 80,000
Other non-current liabilities 346,214 359,602
 
Shareholders' equity 1,027,642 897,290
   
Total liabilities and shareholders' equity $ 2,825,948   $ 3,016,767  
 
 
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
 
Nine Months
Ended September 30,
2010 2009
CASH FLOWS
 
Cash flows from operating activities $ 87,219 $ 103,441
Cash flows from investing activities (14,200 ) (16,877 )
Cash flows from financing activities (48,554 ) 32,844
Effect of exchange rate changes on cash 10,406 4,404
   
Increase in cash and cash equivalents 34,871 123,812
Cash and cash equivalents, beginning of the year   326,000     88,221  
Cash and cash equivalents, end of the period $ 360,871   $ 212,033  
 
OTHER FINANCIAL DATA
 
Decrease in receivables, net $ 67,186 $ 64,838
Change in contracts in progress, net (85,853 ) (51,173 )
Decrease (increase) in non-current contract retentions 3,841 (3,438 )
Decrease in accounts payable   (115,443 )   (160,403 )
Change in contract capital $ (130,269 ) $ (150,176 )
 
Depreciation and amortization expense $ 55,734 $ 59,941
Capital expenditures $ 16,386 $ 36,133
 
Backlog * $ 6,880,083 $ 4,866,422
 

*

Backlog includes the value of new award commitments until work is performed and revenue is recognized or until cancellation.

Backlog may also fluctuate with currency movements.

CONTACT:
CB&I
Media: Jan Sieving, +1 832 513 1111
or
Investors: Mark Coscio, +1 832 513 1200