Chicago Bridge & Iron Company N.V ( CBI )
reported third quarter of fiscal 2012 results, with earnings per
share of 82 cents, up 1.2% from the Zacks Consensus Estimate of 81
cents and 13.9% from the prior-year earnings of 72 cents a share.
The company registered solid quarterly performance driven by strong
order activity during the quarter.
Total Revenue & Order
Revenue for the quarter grew 15% year over year to $1.4 billion,
driven by the rising demand for energy infrastructure, especially
in the LNG, gas processing and oil sands markets across the
In the reported quarter, new awards totaled $930 million, which
increased the company's backlog to $9.5 billion with a good mix of
reimbursable and lump sum contracts. In addition to the new
contract awards, Chicago Bridge & Iron Company had scope
adjustments on existing projects in excess of $500 million.
The company reported revenue growth in two of its three
segments. Project Engineering and Construction
Segment reported a year-over-year revenue growth of 27.0%,
mainly attributable to the increased activities at the REFICAR
refinery project and the construction of gas processing plants in
Lummus Technology revenue for the quarter grew
32% year over year, driven by strong growth in the global
petrochemical market. The robust growth was attributable to
increased revenue volume and higher margins on licensing
CB&I Steel Plate Structures reported a
revenue decline of 2.9% year over year to $496 million, due to the
completion of the company's large projects in the Middle East and
in the Caribbean. This was, however, offset by the ramp up in the
Australian LNG projects.
Gross profit for the quarter grew 28.6% year over year with
gross margin expanding 140 basis points (bps) to 13.1% year over
year. The increase in gross margin reflects the high level of
license sales. Moreover, overhead and S&A expenses have also
declined. Operating margin in the quarter was 8.9% compared with
7.4% in the second quarter of 2011.
Balance Sheet & Cash Flow
Year to date, Chicago Bridge & Iron had a cash balance of
$655 million and a debt of about $615 million. For the first nine
months of 2012, the company repurchased shares worth $138 million.
Capital expenditures for the third quarter were $51
The company primarily competes with EMCOR Group
( EME ), a leader in mechanical and electrical
construction services, energy infrastructure and facilities
services. Chicago Bridge currently has a Zacks Rank of #3, implying
a short-term Hold rating on the stock. CHICAGO BRIDGE (CBI): Free Stock Analysis
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