Exhibit 99.1 CB&I Reports Record New Business in Second Quarter; Net Income Up 33%; Revenues Up 37%; Backlog Up 45% THE WOODLANDS, Texas--(BUSINESS WIRE)--July 30, 2003--CB&I (NYSE:CBI) today reported net income increased 33% to $16.5 million or $0.35 per diluted share for the three months ended June 30, 2003, compared with $12.4 million or $0.28 per diluted share for the second quarter of 2002. Net income for the first half of 2003 increased 29% to $29.2 million or $0.63 per diluted share, compared with $22.7 million or $0.52 per diluted share for the first six months of 2002. For the three months ended June 30, 2003, new business taken increased 31% to a record $539 million compared with $411 million in 2002. Significant new contracts during the quarter included the previously announced liquefied natural gas (LNG) terminal projects in Russia and the southeastern United States, three clean fuels projects in the U.S. and refrigerated storage projects in Australia and Qatar. New business taken for the first half of 2003 was $863 million compared with $836 million for the same period last year. Backlog at June 30, 2003, stood at $1.6 billion compared with $1.1 billion at the end of the second quarter 2002 and $1.3 billion at year end 2002. "We're pleased to report another very successful quarter for CB&I," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "In addition to achieving record sales and exceeding our revenue target, we completed two acquisitions that expand the capabilities of our Process & Technology group and that will be accretive for the full year. And we introduced CB&I's new brand architecture that better reflects our expanded capabilities and global presence." Revenues for the second quarter of 2003 grew 37% to $389.3 million from $284.7 million in the second quarter of 2002. Revenues more than doubled in the Company's Europe, Africa, Middle East (EAME) and Asia Pacific (AP) segments, due primarily to the strong backlog going into the year, with large projects now under way in Saudi Arabia, Nigeria and Australia. Revenues increased in North America, due mainly to a higher volume of process-related work, but declined in the Central and South America (CSA) segment as a result of lower new awards during 2002 and early 2003 in certain Latin American markets. Revenues for the first half of 2003 increased 31% to $711.6 million compared with $544.0 million for the comparable 2002 period. Gross profit for the three months ended June 30, 2003 increased 29% to $49.4 million or 12.7% of revenues compared with 12.3% of revenues in the first quarter of 2003 and 13.4% of revenues for the comparable period in 2002. Gross margin performance was consistent with as-sold margins and better than plan but was slightly lower than the previous year due to the mix of projects being executed in the period. For the first half of 2003, gross profit increased 22% to $89.0 million compared with $73.2 million in the first six months of 2002. Second quarter 2003 income from operations increased 28% to $25.2 million compared with $19.6 million in second quarter 2002. North American results increased primarily due to the significantly higher volume of engineering, procurement and construction (EPC) projects for the hydrocarbon industry. Higher revenues and project cost savings led to improved operating income in the EAME segment, while the AP segment benefited from several significant projects currently under way in Australia. Operating income declined in the CSA segment due to lower revenues and a lack of comparable project cost savings that were generated in the prior year period when several major contracts were nearing completion. For the first half of 2003, income from operations increased 27% to $45.1 million compared with $35.4 million in the comparable 2002 period. No exit costs or other special charges were recorded in the second quarter or first half of 2003. In 2002, the Company reported exit costs of $1.1 million in the second quarter and $2.3 million for the first six months. The Company used approximately $49 million of its cash during the second quarter to fund the acquisitions of Petrofac Limited's U.S. EPC business and John Brown Hydrocarbons Limited. Following these expenditures, CB&I ended the quarter with cash and cash equivalents of $57.4 million. Capital expenditures in the second quarter of 2003, including $7.7 million for the new administrative office building, were $11.8 million compared with $9.9 million for the year-earlier period. Capital expenditures for the first half of 2003 were $20.4 million compared with $12.6 million in the comparable 2002 period. CB&I had net debt (total debt less cash and cash equivalents) of $24.3 million at June 30, 2003, compared with $40.1 million at the end of second quarter 2002. The Company recently completed a 9.9 million share follow-on equity offering, including 1.3 million shares sold as a result of the underwriters exercising their over-allotment option. CB&I sold 1 million primary shares in this offering, receiving the proceeds in the third quarter. "We continue to be gratified by customer interest in our expanded EPC capabilities -- as well as our traditional storage systems -- and by investor confidence in our future prospects," Glenn added. "Our strong sales of more than a half billion dollars in the quarter are indicative of our success in selectively pursuing and winning process and storage projects worldwide in a very competitive marketplace. Our recent equity offering has significantly broadened our institutional shareholder base. We are confident that CB&I's growing technical competence and geographic reach -- bolstered by our acquisitions of Petrofac's U.S. EPC business and John Brown -- will enable us to better serve our customers and lead to continued growth in shareholder value." Any statements made in this release that are not based on historical fact are forward-looking statements and represent management's best judgment as to what may occur in the future. The actual outcome and results are not guaranteed, are subject to risks, uncertainties and assumptions and may differ materially from what is expressed. A variety of factors could cause business conditions and results to differ materially from what is contained in the forward-looking statements including, but not limited to, the Company's ability to realize cost savings from its expected execution performance of contracts; the uncertain timing and the funding of new contract awards, and project cancellations and operating risks; cost overruns on fixed priced contracts; increased competition; fluctuating revenues resulting from a number of factors, including the cyclic nature of the individual markets in which the Company's customers operate; lower than expected activity in the hydrocarbon industry, demand from which is the largest component of the Company's revenue, or lower than expected growth in the Company's other primary end markets; the Company's ability to integrate and successfully operate acquired businesses and the risks associated with those businesses; and the ultimate outcome or effect of the pending FTC proceeding on the Company's business, financial condition and results of operations. Additional factors which could cause actual results to differ from such forward-looking statements are set forth in the Company's Registration Statement on Form S-3 (No. 333-103972) filed with the SEC on June 26, 2003. The Company does not undertake to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. CB&I is a global specialty engineering, procurement and construction (EPC) company serving customers in several primary end markets, including hydrocarbon refining, natural gas, water and the energy sector in general. We offer a complete package of design, engineering, fabrication, procurement, construction and maintenance services. Our projects include hydrocarbon processing plants, LNG terminals and peak shaving plants, bulk liquid terminals, water storage and treatment facilities, and other steel structures and their associated systems. Information about CB&I is available at www.CBIepc.com. - ---------------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three Months Six Months Ended June 30, Ended June 30, 2003 2002 2003 2002 Revenues $389,309 $284,686 $711,618 $543,958 Cost of revenues 339,954 246,548 622,602 470,730 ------- ------- ------- ------- Gross profit 49,355 38,138 89,016 73,228 % of Revenues 12.7% 13.4% 12.5% 13.5% Selling and administrative expenses 23,887 16,915 43,085 34,822 % of Revenues 6.1% 5.9% 6.1% 6.4% Intangibles amortization 649 588 1,287 1,214 Other operating income, net (345) (104) (481) (523) Exit costs - 1,115 - 2,274 ------- ------- ------- ------- Income from operations 25,164 19,624 45,125 35,441 % of Revenues 6.5% 6.9% 6.3% 6.5% Interest expense (1,558) (1,829) (3,245) (3,642) Interest income 510 338 976 684 ------- ------- ------- ------- Income before taxes and minority interest 24,116 18,133 42,856 32,483 Income tax expense (7,307) (5,077) (12,918) (9,095) ------- ------- ------- ------- Income before minority interest 16,809 13,056 29,938 23,388 Minority interest in income (345) (662) (710) (736) ------- ------- ------- ------- Net income $ 16,464 $ 12,394 $ 29,228 $ 22,652 ======= ======= ======= ======= Net income per share Basic $ 0.37 $ 0.29 $ 0.66 $ 0.54 Diluted $ 0.35 $ 0.28 $ 0.63 $ 0.52 Weighted average shares outstanding Basic 44,604 42,202 44,500 42,116 Diluted 46,863 43,954 46,557 43,756 - ---------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES SEGMENT INFORMATION (in thousands) Three Months Ended June 30, June 30, 2003 2002 NEW BUSINESS TAKEN* % of % of Total Total North America $322,140 60% $236,901 58% Europe/Africa/Middle East 151,286 28% 62,347 15% Asia Pacific 41,173 8% 53,330 13% Central & South America 23,975 4% 58,756 14% ------- ------- Total $538,574 $411,334 ======= ======= REVENUES % of % of Total Total North America $239,046 62% $210,277 71% Europe/Africa/Middle East 77,688 20% 32,275 11% Asia Pacific 51,574 13% 20,771 7% Central & South America 21,001 5% 30,363 11% ------- ------- Total $389,309 $284,686 ======= ======= INCOME (LOSS) FROM OPERATIONS % of % of Excluding Exit Costs Revenues Revenues North America $ 18,150 7.6% $ 12,734 6.3% Europe/Africa/Middle East 2,343 3.0% 501 1.6% Asia Pacific 2,986 5.8% 269 1.3% Central & South America 1,685 8.0% 7,235 23.8% ------- ------- Total $ 25,164 6.5% $ 20,739 7.3% ======= ======= EXIT COSTS $ - $ 1,115 ======= ======= INCOME (LOSS) FROM OPERATIONS North America $ 18,150 $ 11,930 Europe/Africa/Middle East 2,343 383 Asia Pacific 2,986 189 Central & South America 1,685 7,122 ------- ------- Total $ 25,164 $ 19,624 ======= ======= Six Months Ended June 30, June 30, 2003 2002 NEW BUSINESS TAKEN* % of % of Total Total North America $553,724 64% $442,637 53% Europe/Africa/Middle East 198,217 23% 221,348 26% Asia Pacific 69,739 8% 96,643 12% Central & South America 41,638 5% 74,947 9% ------- ------- Total $863,318 $835,575 ======= ======= REVENUES % of % of Total Total North America $443,196 62% $396,576 73% Europe/Africa/Middle East 136,641 19% 55,595 10% Asia Pacific 92,606 13% 31,771 6% Central & South America 39,175 6% 60,016 11% ------- ------- Total $711,618 $543,958 ======= ======= INCOME (LOSS) FROM OPERATIONS % of % of Excluding Exit Costs Revenues Revenues North America $ 29,650 6.7% $ 23,252 5.9% Europe/Africa/Middle East 5,903 4.3% 849 1.5% Asia Pacific 4,299 4.6% (192) (0.6%) Central & South America 5,273 13.5% 13,806 23.0% ------- ------- Total $ 45,125 6.3% $ 37,715 6.9% ======= ======= EXIT COSTS $ - $ 2,274 ======= ======= INCOME (LOSS) FROM OPERATIONS North America $ 29,650 $ 21,706 Europe/Africa/Middle East 5,903 495 Asia Pacific 4,299 (321) Central & South America 5,273 13,561 ------- ------- Total $ 45,125 $ 35,441 ======= ======= * New business taken represents the value of new project commitments received by the Company during a given period. Such commitments are included in backlog until work is performed and revenue recognized or until cancellation. Backlog may also fluctuate with currency movements. - ---------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2003 2002 ASSETS Current assets $398,661 $382,423 Property and equipment, net 126,371 109,271 Goodwill and other intangibles, net 236,735 191,459 Other non-current assets 71,725 57,283 ------- ------- Total assets $833,492 $740,436 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $337,660 $287,070 Long-term debt 75,000 75,000 Other non-current liabilities 107,513 96,219 Shareholders' equity 313,319 282,147 ------- ------- Total liabilities and shareholders' equity $833,492 $740,436 ======= ======= - ---------------------------------------------------------------- CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA (in thousands) Six Months Ended June 30, 2003 2002 CASH FLOWS Cash flows from operating activities $ 25,011 $ 5,906 Cash flows from investing activities (67,966) (14,345) Cash flows from financing activities (2,136) (6,679) ------- ------- Decrease in cash and cash equivalents (45,091) (15,118) Cash and cash equivalents, beginning of the year 102,536 50,478 ------- ------- Cash and cash equivalents, end of the period $ 57,445 $ 35,360 ======= ======= OTHER FINANCIAL DATA Depreciation and amortization expense $ 9,770 $ 9,893 Capital expenditures 20,363 12,618 Decrease/(increase) in receivables, net 6,414 (7,116) Increase in contracts in progress, net (35,066) (889) Increase/(decrease) in accounts payable 33,272 (9,063) ------- ------- Change in contract capital $ 4,620 $(17,068) ======= ======= CONTACT: Chicago Bridge & Iron Company Media: Bruce Steimle, 832-513-1111 Analysts: Marty Spake, 832-513-1245