Chicago Bridge & Iron Company N.V.
) reported first quarter 2013 results with earnings per share of
82 cents, down 20.4% from the Zacks Consensus Estimate of $1.03.
However, earnings were up 36.7% year over year, driven by strong
project activities and robust backlog during the reported
On a GAAP basis, the company reported earnings of 32 cents a
share which was way below the Zacks Consensus Estimate and the
year-ago estimate of 60 cents a share. GAAP earnings include an
acquisition-related cost of $51.2 million or 50 cents per share.
Total Revenue & Order
Revenue for the quarter grew a robust 87.4% year over year to
$2.3 billion, driven by the rising demand for energy
infrastructure, especially in the LNG, gas processing and oil
sands markets across the world.
In the reported quarter, new awards totaled $1.95 billion (up
14.8% year over year), which increased the company's backlog to
$25.5 billion with a good mix of reimbursable and lump sum
The company reported revenue growth across four of its
Project Engineering and Construction
reported year-over-year revenue growth of 101.5% to $1.4 billion.
About $374 million of the total increase was driven by the Shaw
acquisition. Remaining growth came from the oil and gas business
unit, which increased its revenues to $1.1 billion or 50%.
The significant revenue increase was also related to increased
activities of the LNG and gas processing work in the Asia Pacific
region, petrochemical work in the United States and continued
significant activities at its REFICAR refinery project.
reported first quarter 2013 revenues of $495 million, reflecting
a 26.5% increase. Fabrication manufacturing revenues were $77
million, with operating income of $9 million. Steel plate
structures revenues increased 7% to $418 million on higher
activity for LNG tank projects in Asia and storage tank work in
North America, partially offset by the substantial completion of
the GASCO project in the Middle East.
had another strong quarter, reporting revenue of $150 million
compared to $100 million in the first quarter of 2012. The
increase in revenues reflects a greater volume of heat transfer
and licensing revenue from a higher beginning-of-the-year
Government Solutions sector reported revenues of $175 million
and operating income of $4 million or 2.3% of revenues. The
post-acquisition half quarter of operating activities were
negatively impacted by the current uncertainties with respect to
government funding and spending.
Gross profit for the quarter grew 60.6% year over year with
gross margin contracting 190 basis points (bps) to 10.9% year
over year. The increase in gross profit was primarily driven by
the acquisition and higher revenues from the oil and gas and
technology business units, which totaled $246 million. However,
the decline in margin primarily reflects the changing relative
revenue volume of the legacy business units and the
Selling and administrative expenses increased to $94 million
from $63 million in 2012. The increase primarily relates to the
acquisition, which accounted for approximately 75% of the dollar
Balance Sheet & Cash Flow
Exiting the quarter, the company had shareholders' equity of
$2 billion, long-term debt of $1.7 billion and a
debt-to-capitalization ratio of 46%.
During the quarter, the company funded the $3.3 billion Shaw
acquisition with $500 million of equity, $1.8 billion of debt and
the balance plus transaction costs and Shaw-related debt
repayments from our combined cash balances.
Chicago Bridge & Iron currently has a Zacks Rank #3
(Hold). However, some companies that you would like to consider
at the moment and operating in the same industry include;
Quanta Services Inc.
) having a Zacks #1 (Strong Buy),
Orion Marine Group
) having Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
CDI CORP (CDI): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
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