Chicago Bridge & Iron Company N.V
) reported third-quarter 2013 adjusted earnings of $121.3 million
or $1.12 per share (excluding the one time items), in line with
the Zacks Consensus Estimate. Adjusted net income improved 46.7%
year over year on the back of strong project activities during
On a GAAP basis, the company reported earnings of $117.7
million or $1.08 a share. Earnings per share increased 31.7% year
over year. GAAP earnings included an acquisition-related cost of
$3.7 million or 4 cents per share.
Total Revenue & Contracts
Revenues for the quarter increased a robust 106.8% year over
year to $3.0 billion, driven by healthy revenue growth across all
the three legacy business units of the company due to the rising
demand for energy infrastructure, especially in the LNG, gas
processing and oil and gas markets across the world.
The company's acquired business units drove the majority of
the revenue growth.
In the reported quarter, new contracts totaled $2.5 billion
(up 168.6% year over year), led by new deals penned by the
Project Engineering and Construction Segment. However, the
company's backlog was flat sequentially at $24.5 billion.
The company reported revenue growth across all four
Project Engineering and Construction
segment's revenues surged 101% year over year to $1.7 billion.
About 70% of the increase was due to greater number of
Additionally, the company's oil and gas business unit reported
healthy growth with significant revenue increase related to
increased activities in LNG and gas processing work in the
Asia-Pacific. Continued significant activities at its REFICAR
refinery project and power and nuclear projects boosted
reported third-quarter 2013 revenues of $707 million, reflecting
a healthy 66.2% year-on-year increase. The rise was driven by
robust domestic and international markets which were strengthened
by shale gas, petrochemical and LNG development.
recorded revenues of $156 million, compared with $150 million in
the third quarter of 2012. The increase was driven by greater
volume of heat transfer and licensing revenues from a higher
segment reported revenues of $378 million or 13% of total revenue
and an operating income of $15.7 million. This segment benefited
from a large number of projects ranging from small environmental
compliance projects to large EPC (Engineering, procurement and
construction) projects for the federal government.
Gross profit for the quarter grew 67.6% year over to $316.6
million. Operating profit was $202.1 million, up 57.7% year over
year. The increase in operating profit was primarily driven by
accretive acquisitions and higher revenues from oil and gas and
technology business units. However, operating profit margin fell
210 basis points due to change in volume mix of the legacy
business units and acquisition costs.
Balance Sheet & Cash Flow
At quarter-end, the company had shareholders' equity of more
than $2 billion, along with long-term debt of $1.7 billion. Cash
flow from operating activities was negative $194 million compared
to a positive $138.1 million in the prior-year quarter.
Exiting the quarter, the company had cash and cash equivalents
of $543 million compared to $655 million in the third quarter of
Along with quarterly earnings, the company reiterated its
guidance for full year 2013 and expects revenues to be in the
range of $10.7-$11.2 billion, with adjusted EPS in the range of
$4.00-$4.35. The company expects new contracts in the range of
Chicago Bridge currently has a Zacks Rank #3 (Hold). Other
companies in the industry which look promising at the moment
Great Lakes Dredge & Dock Corporation
Jacobs Engineering Group, Inc
). All three carry a Zacks Rank #2 (Buy).
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