CB&I Reports Second Quarter 2011 Results
Release: 7/21/2011 4:01:00 PM
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Earnings up 30% over Q2 2010

CB&I (NYSE: CBI) today reported net income of $61.9 million, or $0.62 per diluted share, for the second quarter of 2011. Revenue for the quarter was $1.1 billion.

New awards for the second quarter totaled $1.2 billion, including a gas processing plant in the northeastern U.S., an engineering contract for an offshore platform in the North Sea, and storage tank projects in the Canadian oil sands and the Bahamas. Backlog as of June 30 was $7.3 billion.

Last week, CB&I announced a $2.3 billion contract for the mechanical, electrical and instrumentation work on the Gorgon LNG project in Western Australia, and today, the company announced a $500 million contract for two LNG storage tanks on another Australian LNG project. These awards are not reflected in second quarter results and will be included in the third quarter earnings report.

"We are very pleased with the magnitude of new awards we have announced so far this year," said Philip K. Asherman, President and CEO. "This reflects both the growing momentum in our end markets and ongoing client confidence in our capabilities. Additionally, our operational execution and financial performance have been very strong, providing us with greater visibility into the full year. As a result we are adjusting our 2011 full-year guidance."

CB&I's guidance for 2011 is:

New Awards: $6.8 - $7.2 billion
Revenue: $4.3 - $4.7 billion
Earnings per Share:

$2.35 - $2.45

During the first half of 2011, the Company returned $99.3 million to shareholders, which included $89.4 million of stock repurchases and $9.9 million through the quarterly cash dividends. Cash and cash equivalents as of June 30, 2011 were $375.9 million.

Earnings Conference Call

CB&I will host a webcast on July 21 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss financial and operating results, and answer questions from investors. The webcast is available at www.CBI.comInvestor Relations/Company Highlights.

About CB&I

CB&I (NYSE:CBI) engineers and constructs some of the world's largest energy infrastructure projects. With premier process technology, proven EPC expertise, and unrivaled storage tank experience, CB&I executes projects from concept to completion. Safely. Reliably. Globally. For more information, visit www.CBI.com.

Forward-Looking Statement

This release contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as "achieve," "forecast," "plan," "propose," "strategy," "envision," "hope," "will," "continue," "potential," "expect," "believe," "anticipate," "project," "estimate," "predict," "intend," "should," "could," "may," "might," or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors and "Forward-Looking Statements" described under "Risk Factors" in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2010, and any updates to those risk factors or "Forward-Looking Statements" included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference.

CHICAGO BRIDGE & IRON COMPANY N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three MonthsSix Months
Ended June 30,Ended June 30,
2011201020112010
Revenue $ 1,085,705 $ 916,044 $ 2,039,976 $ 1,785,368
Cost of revenue 945,612 795,742 1,763,167 1,542,785
Gross profit 140,093 120,302 276,809 242,583
% of Revenue12.9%13.1%13.6%13.6%
Selling and administrative expenses 48,475 46,342 106,140 97,590
% of Revenue4.5%5.1%5.2%5.5%
Intangibles amortization 6,372 5,812 12,664 11,760
Other operating expense (income), net 54 779 (844 ) 852
Equity earnings (3,204 ) (3,533 ) (4,550 ) (7,042 )
Income from operations 88,396 70,902 163,399 139,423
% of Revenue8.1%7.7%8.0%7.8%
Interest expense (3,538 ) (3,079 ) (6,595 ) (6,799 )
Interest income 1,743 1,055 3,115 2,291
Income before taxes 86,601 68,878 159,919 134,915
Income tax expense (24,898 ) (19,994 ) (46,652 ) (41,126 )
Net income 61,703 48,884 113,267 93,789
Less: Net loss (income) attributable to noncontrolling interests 191 (1,557 ) (867 ) (4,271 )
Net income attributable to CB&I $ 61,894 $ 47,327 $ 112,400 $ 89,518
Net income attributable to CB&I per share:
Basic $ 0.63 $ 0.48 $ 1.14 $ 0.91
Diluted $ 0.62 $ 0.47 $ 1.12 $ 0.89
Weighted average shares outstanding:
Basic 98,449 98,951 98,494 98,840
Diluted 100,163 100,641 100,503 100,796
Cash dividends on shares:
Amount $ 4,930 $ - $ 9,920 $ -
Per Share $ 0.05 $ - $ 0.10 $ -

CHICAGO BRIDGE & IRON COMPANY N.V.
SEGMENT INFORMATION
(in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2011201020112010
% of% of% of% of
NEW AWARDS*TotalTotalTotalTotal
CB&I Steel Plate Structures $ 370,541 31% $ 286,651 31% $ 662,085 30% $ 474,081 32%
CB&I Lummus 767,388 63% 546,027 60% 1,354,091 61% 819,737 56%
Lummus Technology 77,660 6% 83,117 9% 210,976 9% 182,217 12%
Total $ 1,215,589 $ 915,795 $ 2,227,152 $ 1,476,035
% of% of% of% of
REVENUETotalTotalTotalTotal
CB&I Steel Plate Structures $ 456,357 42% $ 360,261 39% $ 825,065 41% $ 695,169 39%
CB&I Lummus 541,647 50% 505,847 55% 1,006,217 49% 971,949 54%
Lummus Technology 87,701 8% 49,936 6% 208,694 10% 118,250 7%
Total $ 1,085,705 $ 916,044 $ 2,039,976 $ 1,785,368
% of% of% of% of
INCOME FROM OPERATIONSRevenueRevenueRevenueRevenue
CB&I Steel Plate Structures $ 47,489 10.4% $ 32,545 9.0% $ 84,413 10.2% $ 64,638 9.3%
CB&I Lummus 24,476 4.5% 25,264 5.0% 39,491 3.9% 44,552 4.6%
Lummus Technology 16,431 18.7% 13,093 26.2% 39,495 18.9% 30,233 25.6%
Total $ 88,396 8.1% $ 70,902 7.7% $ 163,399 8.0% $ 139,423 7.8%
* New awards represents the value of new project commitments received by the Company during a given period.

CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30,December 31,
20112010
ASSETS
Current assets $ 1,389,572 $ 1,206,648
Equity investments 95,547 92,400
Property and equipment, net 277,953 290,206
Goodwill and other intangibles, net 1,163,950 1,154,256
Other non-current assets 151,984 166,024
Total assets $ 3,079,006 $ 2,909,534
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable $ 574 $ 334
Current maturity of long-term debt 40,000 40,000
Other current liabilities 1,497,180 1,400,299
Long-term debt 40,000 40,000
Other non-current liabilities 335,468 345,056
Shareholders' equity 1,165,784 1,083,845
Total liabilities and shareholders' equity $ 3,079,006 $ 2,909,534
CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
Six Months
Ended June 30,
20112010
CASH FLOWS
Cash flows from operating activities $ (34,443 ) $ 40,823
Cash flows from investing activities (13,262 ) (5,723 )
Cash flows from financing activities (83,737 ) (40,362 )
Effect of exchange rate changes on cash 25,582 (20,282 )
Decrease in cash and cash equivalents (105,860 ) (25,544 )
Cash and cash equivalents, beginning of the year 481,738 326,000
Cash and cash equivalents, end of the period $ 375,878 $ 300,456
OTHER FINANCIAL DATA
(Increase) decrease in receivables, net $ (216,547 ) $ 79,194
Change in contracts in progress, net (19,596 ) (56,664 )
Increase (decrease) in accounts payable 87,101 (104,594 )
Change in contract capital $ (149,042 ) $ (82,064 )
Depreciation and amortization $ 34,545 $ 38,323
Capital expenditures $ 15,763 $ 9,250
Backlog * $ 7,257,390 $ 6,777,751

* Backlog includes the value of new award commitments until work is performed and revenue is recognized or until cancellation. Backlog may also fluctuate with currency movements.

CB&I
Media: Jan Sieving, +1 832 513 1111
or
Investors: Christi Thoms, +1 832 513 1200