Chicago Bridge & Iron (CBI) Posts Wide Loss of Lower Revs

Chicago Bridge & Iron (NYSE: CBI) reported Q2 EPS of ($3.02), $3.85 worse than the analyst estimate of $0.83. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $2.47 billion.

"Although our second quarter results are disappointing, we are taking decisive actions to improve our operating performance and strengthen the company\'s financial position," said Patrick K. Mullen, President and Chief Executive Officer of CB&I. "We have initiated a comprehensive cost reduction program and suspended our dividend. We are injecting additional rigor and discipline into our execution and risk management processes, further strengthening the integration between our E&C and Fabrication Services operating groups, and accelerating the implementation of innovative practices and technologies. We remain committed to our integrated self-perform model, which we believe will enable us to generate attractive earnings and cash flows over time.

"Additionally, we announced today that we are pursuing a sale of our Technology business, which we believe will unlock significant value for stakeholders. We plan to use the proceeds from the sale to significantly enhance CB&I\'s financial strength and flexibility by eliminating the majority of our debt and reinvesting in our E&C and Fabrication Services businesses. We envision a bright future for CB&I as a highly focused company with tightly integrated EPC and fabrication capabilities serving the LNG, petrochemical, refining and gas power generation markets."

Guidance

Based on the market conditions and operating environment that CB&I has encountered through the first six months of 2017, the company has revised its outlook for the second half of the year. The company currently expects second-half revenue to be between $3.7 and $4.0 billion and diluted earnings per share in the range of $1.00 to $1.25. The company's earnings guidance does not include any benefits from the cost reduction program, which are likely to be realized in 2018.

For earnings history and earnings-related data on Chicago Bridge & Iron (CBI) click here.

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