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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

Business Wire

THE WOODLANDS, Texas -- February 27, 2013

CB&I (NYSE: 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.com Investor Relations.

About CB&I

CB&I (NYSE: 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            1,339,800         1,108,607         4,786,499         3,980,306
revenue
                                                                    
Gross profit       197,668           146,615           698,707           570,236
% of Revenue       12.9      %       11.7      %       12.7      %       12.5      %
                                                                       
Selling and
administrative     59,464            49,661            227,948           205,550
expense
% of Revenue       3.9       %       4.0       %       4.2       %       4.5       %
                                                                       
Intangibles        4,488             7,229             22,613            26,302
amortization
Other
operating          6,618             304               10,434            74
expense, net
Equity             (11,416   )       (9,649    )       (17,931   )       (16,887   )
earnings
                                                                    
Income from        138,514           99,070            455,643           355,197
operations
% of Revenue       9.0       %       7.9       %       8.3       %       7.8       %
                                                                       
Interest           (7,837    )       (3,330    )       (19,606   )       (11,030   )
expense
Interest           1,592             2,300             8,029             7,796
income
                                                                    
Income before      132,269           98,040            444,066           351,963
taxes
                                                                       
Income tax         (35,277   )       (27,512   )       (127,003  )       (96,765   )
expense
                                                                    
Net income         96,992            70,528            317,063           255,198
                                                                       
Less: Net
income
attributable      (7,375    )      (60       )      (15,408   )      (166      )
to
noncontrolling
interests
                                                                       
Net income
attributable     $ 89,617         $ 70,468         $ 301,655        $ 255,032   
to CB&I
                                                                       
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                                 Twelve Months Ended   
               December 31,                                        December 31,
               2012                      2011                     2012                    2011
                                                                                                         
                             % of                      % of                      % of                    % of
NEW AWARDS*                  Total                     Total                     Total                   Total
Steel Plate    $ 921,344     32    %     $ 281,822     36    %     $ 2,495,358   34   %    $ 4,079,599   60    %
Structures
Project
Engineering      1,785,141   63    %       337,135     44    %       4,083,891   56   %      2,190,272   32    %
and
Construction
Lummus          144,251     5     %      153,450     20    %      726,721     10   %     537,844     8     %
Technology
Total          $ 2,850,736               $ 772,407                 $ 7,305,970             $ 6,807,715
                                                                                                         
                                                                                                         
                             % of                      % of                      % of                    % of
REVENUE                      Total                     Total                     Total                   Total
Steel Plate    $ 541,644     35    %     $ 475,739     38    %     $ 1,957,681   36   %    $ 1,812,180   40    %
Structures
Project
Engineering      847,729     55    %       653,561     52    %       3,040,229   55   %      2,289,788   50    %
and
Construction
Lummus          148,095     10    %      125,922     10    %      487,296     9    %     448,574     10    %
Technology
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    $ 54,649      10.1  %     $ 39,586      8.3   %     $ 192,593     9.8  %    $ 167,283     9.2   %
Structures
Project
Engineering      42,945      5.1   %       29,484      4.5   %       136,689     4.5  %      91,576      4.0   %
and
Construction
Lummus          40,920      27.6  %      30,000      23.8  %      126,361     25.9 %     96,338      21.5  %
Technology
Total          $ 138,514     9.0   %     $ 99,070      7.9   %     $ 455,643     8.3  %    $ 355,197     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)
                                                    
                                                           
                                 December 31,
                                 2012                      2011 *
ASSETS
                                                           
Current assets                   $     2,721,555           $     1,653,096
Equity investments                     97,267                    95,687
Property and equipment,                285,871                   262,003
net
Goodwill and other                     1,093,019                 1,114,512
intangibles, net
Other non-current assets               131,963                   154,051
                                                          
Total assets                     $     4,329,675           $     3,279,349
                                                           
                                                           
LIABILITIES AND
SHAREHOLDERS' EQUITY
                                                           
Current maturity of              $     -                   $     40,000
long-term debt
Other current liabilities              1,772,522                 1,716,879
Long-term debt                         800,000                   -
Other non-current                      360,843                   326,040
liabilities
                                                           
Shareholders' equity                   1,396,310                 1,196,430
                                                          
Total liabilities and            $     4,329,675           $     3,279,349
shareholders' equity
                                                           
* Certain December 31, 2011 income tax payable, income tax receivable and
deferred tax asset and liability balances have been reclassified to conform to
our December 31, 2012 presentation.



CHICAGO BRIDGE & IRON COMPANY N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER FINANCIAL DATA
(in thousands)
                                                      
                              Twelve Months
                              Ended December 31,
                                   2012                     2011        
CASH FLOWS
                                                           
Cash flows from               $     202,504                $   413,155
operating activities
Cash flows from                     (66,785       )            (32,753     )
investing activities
Cash flows from                     (174,111      )            (178,795    )
financing activities
Effect of exchange rate
changes on cash and                 9,976                      (11,534     )
cash equivalents
                                                          
(Decrease) increase in
cash and cash                       (28,416       )            190,073
equivalents
Cash and cash
equivalents, beginning             671,811                  481,738     
of the year
Cash and cash
equivalents, end of the       $     643,395               $   671,811     
year
                                                           
OTHER FINANCIAL DATA
                                                           
Increase in                   $     (258,132      )        $   (130,192    )
receivables, net
Change in contracts in              (222,133      )            16,419
progress, net
Increase in accounts               135,755                  159,524     
payable
Change in contract            $     (344,510      )        $   45,751      
capital
                                                           
Depreciation and              $     66,421                 $   70,184
amortization
Capital expenditures          $     72,279                 $   40,945
                                                           
Backlog **                    $     10,928,818             $   8,968,206
                                                           
                                                           
** 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.


Contact:

CB&I
Investors: Christi Thoms, +1 832-513-1200
Media: www.CBI.com
 
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