Exhibit 99.1
CB&I Announces Second Quarter 2007 Results
Company Raises 2007 Earnings Guidance
THE WOODLANDS, Texas--(BUSINESS WIRE)--Aug. 1, 2007--CB&I
(NYSE:CBI) today reported net income of $26.1 million, or $0.27 per
diluted share, for the second quarter 2007 compared with $32.6
million, or $0.33 per diluted share, for the second quarter 2006.
Revenue for the second quarter was $1.0 billion, up 36 percent
from $744.2 million in the second quarter of 2006, reflecting double
digit growth in each of the company's reporting segments.
"In the first half of 2007, CB&I posted solid gains in new awards
and revenues," said Philip K. Asherman, President and CEO. "Overall
performance has been good across our geographic segments. However,
labor issues on two U.K. projects in our Europe/ Africa/ Middle East
segment, and on our last significant pre-Katrina project in North
America, which is now complete, diluted our margins for the quarter.
Looking forward, we are confident that CB&I will continue to
capitalize on the very strong energy market. Based on anticipated new
awards, projected revenue growth and a return to expected margin
levels, we are raising our guidance for the year."
CB&I raised its full year 2007 guidance for earnings, revenue and
new awards. The company anticipates that earnings per share will be in
the range of $1.50 - $1.65, with revenue of $4.0 - $4.3 billion and
new awards of $5.5 - $6.0 billion.
New awards were $2.0 billion for the second quarter and $4.1
billion for the first half, bringing CB&I's backlog to $6.8 billion.
Key projects booked in the quarter include a Chilean LNG
regasification terminal and the Isle of Grain LNG expansion project in
the U.K.
In the first half of the year, CB&I returned $39 million to its
stockholders through stock repurchases and cash dividends,
repurchasing approximately 976,000 shares of common stock for $30.9
million. The company continued to invest in its infrastructure
spending $49.4 million on capital expenditures for the first half of
2007. Cash and cash equivalents increased to $661 million as of June
30, 2007, up from $619 million at year-end 2006.
Second Quarter Conference Call
CB&I will host a conference call August 1, 2007 at 10 a.m. CDT to
discuss financial results. The webcast will be available at
www.shareholder.com/cbi/medialist.cfm or at www.CBI.com Investor
Relations / Presentations & Webcasts.
About CB&I
CB&I executes more than 500 projects each year and is one of the
world's leading engineering, procurement and construction (EPC)
companies, specializing in projects for customers that produce,
process, store and distribute the world's natural resources. With more
than 60 locations and approximately 14,000 employees throughout the
world, CB&I capitalizes on its global expertise and local knowledge to
safely and reliably deliver projects virtually anywhere. Information
about CB&I is available at www.CBI.com.
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 those
expressed or implied by any forward-looking statements. 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 performance of contracts; the uncertain
timing and funding of new contract awards, and project cancellations
and operating risks; cost overruns on fixed price, target price or
similar contracts whether as the result of improper estimates or
otherwise; risks associated with percentage-of-completion accounting;
the Company's ability to settle or negotiate unapproved change orders
and claims; changes in the costs or availability of, or delivery
schedule for, equipment, components, materials, labor or
subcontractors; adverse impacts from weather conditions may affect the
Company's performance and timeliness of completion, which could lead
to increased costs and affect the costs or availability of, or
delivery schedule for, equipment, components, materials, labor or
subcontractors; increased competition; fluctuating revenue resulting
from a number of factors, including the cyclical 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; lower than expected
growth in the Company's primary end markets, including but not limited
to LNG and refining and related processes; risks inherent in
acquisitions and the Company's ability to obtain financing for
proposed acquisitions; the Company's ability to integrate and
successfully operate acquired businesses and the risks associated with
those businesses; adverse outcomes of pending claims or litigation or
the possibility of new claims or litigation, including but not limited
to pending securities class action litigation, and the potential
effect on the Company's business, financial condition and results of
operations; the ultimate outcome or effect of the pending Federal
Trade Commission order on the Company's business, financial condition
and results of operations; lack of necessary liquidity to finance
expenditures prior to the receipt of payment for the performance of
contracts and to provide bid and performance bonds and letters of
credit securing the Company's obligations under its bids and
contracts; proposed and actual revisions to U.S. and non-U.S. tax
laws, and interpretation of said laws, and U.S. tax treaties with
non-U.S. countries (including The Netherlands), that seek to increase
income taxes payable; political and economic conditions including, but
not limited to, war, conflict or civil or economic unrest in countries
in which the Company operates; and a downturn or disruption in the
economy in general. Additional factors which could cause actual
results to differ materially from such forward-looking statements are
described under "Risk Factors" as set forth in the Company's Form 10-K
filed with the SEC for the year ended Dec. 31, 2006. The Company does
not undertake to update any forward-looking statements contained
herein, whether as a result of new information, future events or
otherwise.
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,
2007 2006 2007 2006
Revenue $1,011,367 $744,187 $1,868,672 $1,390,783
Cost of revenue 949,208 670,469 1,723,174 1,257,865
----------- --------- ----------- -----------
Gross profit 62,159 73,718 145,498 132,918
% of Revenue 6.1% 9.9% 7.8% 9.6%
Selling and
administrative expenses 31,671 29,533 68,509 68,482
% of Revenue 3.1% 4.0% 3.7% 4.9%
Intangibles amortization 132 1,134 264 1,311
Other operating loss
(income), net 237 (344) (191) (434)
----------- --------- ----------- -----------
Income from
operations 30,119 43,395 76,916 63,559
% of Revenue 3.0% 5.8% 4.1% 4.6%
Interest expense (917) (2,324) (1,995) (4,713)
Interest income 8,051 4,138 16,122 6,988
----------- --------- ----------- -----------
Income before taxes
and minority
interest 37,253 45,209 91,043 65,834
Income tax expense (9,354) (11,307) (25,491) (17,775)
----------- --------- ----------- -----------
Income before
minority interest 27,899 33,902 65,552 48,059
Minority interest in
income (1,783) (1,284) (2,841) (2,105)
----------- --------- ----------- -----------
Net income $ 26,116 $ 32,618 $ 62,711 $ 45,954
=========== ========= =========== ===========
Net income per share
Basic $ 0.27 $ 0.34 $ 0.66 $ 0.47
Diluted $ 0.27 $ 0.33 $ 0.65 $ 0.46
Weighted average shares
outstanding
Basic 95,638 97,216 95,586 97,302
Diluted 96,644 98,967 96,691 99,115
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
Three Months Ended
June 30, June 30,
2007 2006
NEW AWARDS(1) % of % of
Total Total
North America $ 558,151 28% $446,937 70%
Europe, Africa & Middle East 623,995 31% 128,299 20%
Asia Pacific 51,894 3% 35,151 6%
Central & South America 753,152 38% 26,453 4%
----------- --------
Total $1,987,192 $636,840
=========== ========
REVENUE % of % of
Total Total
North America $ 456,386 45% $407,475 55%
Europe, Africa & Middle East 339,499 33% 245,810 33%
Asia Pacific 97,949 10% 61,621 8%
Central & South America 117,533 12% 29,281 4%
----------- --------
Total $1,011,367 $744,187
=========== ========
INCOME (LOSS) % of % of
FROM OPERATIONS Revenue Revenue
North America $ 18,742 4.1% $ 21,233 5.2%
Europe, Africa & Middle East (7,402) (2.2%) 13,139 5.3%
Asia Pacific 8,628 8.8% 5,864 9.5%
Central & South America 10,151 8.6% 3,159 10.8%
----------- --------
Total $ 30,119 3.0% $ 43,395 5.8%
=========== ========
Six Months Ended
June 30, June 30,
2007 2006
NEW AWARDS(1) % of % of
Total Total
North America $ 952,925 23% $1,051,668 70%
Europe, Africa & Middle East 759,325 18% 315,966 21%
Asia Pacific 63,768 2% 69,410 4%
Central & South America 2,359,632 57% 72,210 5%
---------- ----------
Total $4,135,650 $1,509,254
========== ==========
REVENUE % of % of
Total Total
North America $ 886,530 48% $ 765,707 55%
Europe, Africa & Middle East 622,483 33% 459,689 33%
Asia Pacific 183,370 10% 109,332 8%
Central & South America 176,289 9% 56,055 4%
---------- ----------
Total $1,868,672 $1,390,783
========== ==========
INCOME (LOSS) % of % of
FROM OPERATIONS Revenue Revenue
North America $ 48,258 5.4% $ 24,363 3.2%
Europe, Africa & Middle East 614 0.1% 29,106 6.3%
Asia Pacific 14,425 7.9% 6,308 5.8%
Central & South America 13,619 7.7% 3,782 6.7%
---------- ----------
Total $ 76,916 4.1% $ 63,559 4.6%
========== ==========
(1) New awards represents the value of new project commitments
received by the Company during a given period. These commitments are
included in backlog until work is performed and revenue is 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,
2007 2006
ASSETS
Current assets $1,445,827 $ 1,295,790
Property and equipment, net 222,501 194,644
Goodwill and other intangibles, net 254,474 255,550
Other non-current assets 34,838 38,428
----------- ------------
Total assets $1,957,640 $ 1,784,412
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $1,250,789 $ 1,137,160
Other non-current liabilities 114,408 104,817
Shareholders' equity 592,443 542,435
----------- ------------
Total liabilities and shareholders'
equity $1,957,640 $ 1,784,412
=========== ============
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,
2007 2006
CASH FLOWS
Cash flows from operating activities $ 117,150 $ 202,650
Cash flows from investing activities (47,647) (64,054)
Cash flows from financing activities (27,699) (15,284)
----------- ------------
Increase in cash and cash equivalents 41,804 123,312
Cash and cash equivalents, beginning of the
year 619,449 333,990
----------- ------------
Cash and cash equivalents, end of the period $ 661,253 $ 457,302
=========== ============
OTHER FINANCIAL DATA
Depreciation and amortization expense $ 15,520 $ 13,860
Capital expenditures $ 49,366 $ 43,166
Increase in receivables, net $ (15,160) $ (80,387)
Change in contracts in progress, net (6,750) 229,254
Decrease (increase) in non-current contract
retentions 5,425 (6,882)
Increase in accounts payable 54,171 21,800
----------- ------------
Change $ 37,686 $ 163,785
=========== ============
Backlog $6,795,433 $ 3,356,253
CONTACT: CB&I
Jan Sieving, +1-832-513-1111 (Media)
Marty Spake, +1-832-513-1245 (Analysts)