CB&I Reports 2012 Fourth Quarter and Full-Year Results

CB&I Reports 2012 Fourth Quarter and Full-Year Results

Earnings per Share up 30% over Q4 2011, 2012 New Awards of $7.3 billion

THE WOODLANDS, Texas--(BUSINESS WIRE)-- CB&I (NYS: CBI) today reported net income for the fourth quarter of $89.6 million, or $0.91 per diluted share, versus $70.5 million or $0.70 per diluted share in the fourth quarter of 2011. Revenue for the quarter was $1.5 billion, with new awards of $2.9 billion.


For the full-year, net income was $301.7 million, or $3.07 per diluted share, up 20% in earnings per share year-over-year. CB&I's consolidated 2012 revenue was $5.5 billion, up 21% from the prior year. Cash and cash equivalents as of December 31, 2012 were $643.4 million.

"I am extremely pleased that CB&I has delivered another year of strong new awards and outstanding performance, resulting in double-digit backlog growth and earnings per share exceeding the top end of our expectations for 2012," said Philip K. Asherman, President and CEO. "I am particularly proud that we continue to achieve exceptional safety performance around the world. On nearly 71 million work-hours at year-end and with one of our businesses having executed more than 39 million work-hours with zero lost time incidents, CB&I remains in the top tier of safest companies in the industry. Our relentless focus on safety provides the company with not only a tremendous competitive advantage, but also drives recruiting, retention, and client confidence, and most importantly it's the right thing to do for our employees."

New Awards for 2012 totaled $7.3 billion, reflecting the company's ability to capitalize on its global end markets across each of its business sectors. Noteworthy 2012 awards included FEED contracts for Freeport LNG in the U.S. and Andarko's Mozambique LNG project, an Oil Sands award for the Kearl Expansion in Canada, Gas Processing projects in Australia and Denmark, an Offshore contract for the Mariner Topsides project in the North Sea, a Paraxylene technology award by Reliance for the world's largest aromatics complex, as well as numerous additional strategic Petrochemical and Refining technology licensing awards.

Earnings Conference Call

CB&I will host a webcast on February 27 at 4:00 p.m. CST (5:00 p.m. EST) to discuss financial and operating results, and answer questions from investors. The webcast is available at www.CBI.comInvestor Relations.

About CB&I

CB&I (NYS: CBI) is the most complete energy infrastructure focused company in the world and a major provider of government services. Drawing upon more than a century of experience and the expertise of approximately 50,000 employees, CB&I provides reliable solutions while maintaining a relentless focus on safety and an uncompromising standard of quality. 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, 2012, 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 Months

Twelve Months

Ended December 31,

Ended December 31,

2012

2011

2012

2011

Revenue

$

1,537,468

$

1,255,222

$

5,485,206

$

4,550,542

Cost of revenue

1,339,800

1,108,607

4,786,499

3,980,306

Gross profit

197,668

146,615

698,707

570,236

% of Revenue

12.9

%

11.7

%

12.7

%

12.5

%

Selling and administrative expense

59,464

49,661

227,948

205,550

% of Revenue

3.9

%

4.0

%

4.2

%

4.5

%

Intangibles amortization

4,488

7,229

22,613

26,302

Other operating expense, net

6,618

304

10,434

74

Equity earnings

(11,416

)

(9,649

)

(17,931

)

(16,887

)

Income from operations

138,514

99,070

455,643

355,197

% of Revenue

9.0

%

7.9

%

8.3

%

7.8

%

Interest expense

(7,837

)

(3,330

)

(19,606

)

(11,030

)

Interest income

1,592

2,300

8,029

7,796

Income before taxes

132,269

98,040

444,066

351,963

Income tax expense

(35,277

)

(27,512

)

(127,003

)

(96,765

)

Net income

96,992

70,528

317,063

255,198

Less: Net income attributable to noncontrolling interests

(7,375

)

(60

)

(15,408

)

(166

)

Net income attributable to CB&I

$

89,617

$

70,468

$

301,655

$

255,032

Net income attributable to CB&I per share:

Basic

$

0.93

$

0.72

$

3.12

$

2.60

Diluted

$

0.91

$

0.70

$

3.07

$

2.55

Weighted average shares outstanding:

Basic

96,479

97,343

96,633

98,022

Diluted

98,230

100,008

98,231

100,205

Cash dividends on shares:

Amount

$

4,841

$

4,881

$

19,394

$

19,722

Per Share

$

0.05

$

0.05

$

0.20

$

0.20

CHICAGO BRIDGE & IRON COMPANY N.V.

SEGMENT INFORMATION

(in thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2012

2011

2012

2011

% of

% of

% of

% of

NEW AWARDS*

Total

Total

Total

Total

Steel Plate Structures

$

921,344

32

%

$

281,822

36

%

$

2,495,358

34

%

$

4,079,599

60

%

Project Engineering and Construction

1,785,141

63

%

337,135

44

%

4,083,891

56

%

2,190,272

32

%

Lummus Technology

144,251

5

%

153,450

20

%

726,721

10

%

537,844

8

%

Total

$

2,850,736

$

772,407

$

7,305,970

$

6,807,715

% of

% of

% of

% of

REVENUE

Total

Total

Total

Total

Steel Plate Structures

$

541,644

35

%

$

475,739

38

%

$

1,957,681

36

%

$

1,812,180

40

%

Project Engineering and Construction

847,729

55

%

653,561

52

%

3,040,229

55

%

2,289,788

50

%

Lummus Technology

148,095

10

%

125,922

10

%

487,296

9

%

448,574

10

%

Total

$

1,537,468

$

1,255,222

$

5,485,206

$

4,550,542

% of

% of

% of

% of

INCOME FROM OPERATIONS

Revenue

Revenue

Revenue

Revenue

Steel Plate Structures

$

54,649

10.1

%

$

39,586

8.3

%

$

192,593

9.8

%

$

167,283

9.2

%

Project Engineering and Construction

42,945

5.1

%

29,484

4.5

%

136,689

4.5

%

91,576

4.0

%

Lummus Technology

40,920

27.6

%

30,000