Chicago Bridge & Iron Company N.V (
reported fourth quarter 2012 results, with earnings per share of
91 cents increasing 9.6% from the Zacks Consensus Estimate of 83
cents and 30% from 70 cents a share earned in the year-ago
quarter. The company registered solid quarterly performance
driven by strong order activity during the quarter.
For full year 2012, the company reported earnings of $3.07 a
share, up 2.7% from the Zacks Consensus Estimate and 20% year
Total Revenue & Order
Revenue for the fourth quarter grew 22.5% year over year to
$1.5 billion, driven by higher demand for energy infrastructure,
especially in the LNG, gas processing and oil sands markets
across the world.
In the reported quarter, new awards totaled $2.8 billion,
which in turn increased the company's backlog to $7.3 billion for
2012 with a good mix of reimbursable and lump sum contracts.
The company reported revenue growth across three of its
Project Engineering and Construction Segment
reported year-over-year revenue growth of 29.7%, mainly
attributable to the construction activities on the company's
Colombia refining project and gas processing plants in PNG in the
revenue for the quarter grew 17.6% year over year, driven by the
continued strength of the petrochemical demand and the improving
CB&I Steel Plate Structures
reported revenue growth of 13.9% year over year to $541 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 spiked 34.8% year over year with
gross margin expanding 120 basis points (bps) to 12.9% year over
year. The increase in gross margin reflects the high level of
license sales. Moreover, overhead and S&A expenses also
declined. Operating margin in the quarter was 9.0% compared with
7.9% in the fourth quarter of 2011.
Balance Sheet & Cash Flow
Exiting the year, Chicago Bridge & Iron had a cash balance
of $643 million and a debt of about $8 billion. In 2012, the
company repurchased shares worth $123 million. Capital
expenditures for the year were $72 million.
Chicago Bridge & Iron has a Zacks Rank #2 (Buy). The
company's competitors such as
Aecom Technology Corp
) also carry a Zacks Rank #2 (Buy).
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