CB&I Reports Strong 2013 Second Quarter Results

               CB&I Reports Strong 2013 Second Quarter Results

PR Newswire

THE WOODLANDS, Texas, July 30, 2013

THE WOODLANDS, Texas, July 30, 2013 /PRNewswire/ --CB&I (NYSE: CBI) today
reported net income for the second quarter of $106.0 million, or $0.98 per
diluted share, including the after tax impact of acquisition-related costs of
$6.3 million, or $0.06 per diluted share. Revenue for the second quarter was
$2.9 billion with new awards of $2.5 billion, resulting in a backlog of $24.5
billion.

"I am pleased to report that CB&I delivered strong execution in the second
quarter," said Philip K. Asherman, President and CEO. "The company continued
to deliver growth in revenue and income from operations. Revenue was up 119%
from $1.3 billion in the second quarter 2012, and adjusted income from
operations was $195.4 million, up 87% from the comparable period last year.
CB&I reported second quarter adjusted earnings per share of $1.04."

"Our operational execution and financial performance have been trending as
expected, and the market momentum continues but with timing of anticipated
major EPC awards and delays due to governmental approvals, we have adjusted
our new awards guidance for the year, and maintain our guidance for revenue
and adjusted earnings per share," continued Asherman.

CB&I's updated guidance for 2013 is:

New Awards:                  $11.0 - $15.0 billion
Revenue:                     $10.7 - $11.2 billion
Adjusted Earnings per Share: $4.00 - $4.35

Earnings Conference Call

CB&I will host a webcast on July 30 at 4:00 p.m. CDT (5:00 p.m. EDT) to
discuss financial and operating results, and answer questions from investors.
The webcast will be available on the Investor Relations page of www.CBI.com.

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.

Cautionary Statement Regarding Forward-Looking Statements

This press 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              Six Months
                            Ended June 30,            Ended June 30,
                            2013         2012         2013         2012
Revenue                     $           $           $           $ 
                            2,850,791    1,299,529    5,102,220    2,500,796
Cost of revenue             2,553,700    1,140,644    4,558,985    2,188,647
     Gross profit           297,091      158,885      543,235      312,149
     % of Revenue           10.4%        12.2%        10.6%        12.5%
Selling and administrative  92,897       52,392       186,865      115,624
expense
     % of Revenue           3.3%         4.0%         3.7%         4.6%
Intangibles amortization    16,083       6,037        25,271       12,129
Equity earnings             (5,918)      (4,010)      (10,403)     (5,810)
Other operating income,     (1,367)      (173)        (1,664)      (238)
net
Acquisition-related costs   9,964        1,500        71,220       1,500
     Income from            185,432      103,139      271,946      188,944
     operations
     % of Revenue           6.5%         7.9%         5.3%         7.6%
Interest expense            (20,757)     (2,831)      (43,503)     (4,943)
Interest income            1,998        2,288        3,869        4,475
     Income before taxes    166,673      102,596      232,312      188,476
Income tax expense         (46,973)     (29,752)     (69,740)     (54,658)
     Net income             119,700      72,844       162,572      133,818
Less: Net income
attributable to             (13,657)     (524)        (22,921)     (2,011)
noncontrolling interests
     Net income             $          $         $          $  
     attributable to CB&I   106,043     72,320      139,651     131,807
Net income attributable to
CB&I per share:
     Basic                  $       $       $       $     
                            0.99         0.75         1.34         1.36
     Diluted                $       $       $       $     
                            0.98         0.74         1.32         1.34
Weighted average shares
outstanding:
     Basic                  107,056      96,401       104,444      96,829
     Diluted                108,392      97,632       105,963      98,442
Cash dividends on shares:
     Amount                 $        $        $         $    
                            5,363        4,832        10,708       9,717
     Per Share              $       $       $       $     
                            0.05         0.05         0.10         0.10
Non-GAAP Supplemental Information
(amounts adjusted to exclude Shaw acquisition-related transaction costs) ^(1)
     Adjusted income from   $          $          $          $   
     operations             195,396     104,639     343,166     190,444
     Adjusted % of Revenue  6.9%         8.1%         6.7%         7.6%
     Adjusted net income    $          $         $          $  
     attributable to CB&I   112,321     73,288      197,177     132,775
     Adjusted net income    $       $       $       $     
     attributable to CB&I   1.04        0.75         1.86        1.35
     per share (diluted)

     The exclusion of Shaw acquisition-related transaction costs is a non-GAAP
^(1) financial measure, which we believe provides users a better indication of
     our operating performance. See Reconciliation of Non-GAAP Supplemental
     Information table.





Chicago Bridge & Iron Company N.V.
Segment Information
(in thousands)
                    Three Months Ended June 30,                Six Months Ended June 30,
                    2013                 2012                  2013                  2012
                              % of                % of                % of                % of
NEW AWARDS ^(1)
                              Total               Total               Total               Total
Engineering,       $                   $                     $                     $
Construction and    1,526,014 61%        1,350,101 74%        2,526,464 57%        2,505,496 71%
Maintenance
Fabrication        493,431   20%        168,167    9%         1,201,137  27%        579,090    16%
Services
Technology        107,394   4%         311,493    17%        260,142    6%         440,536    13%
Government         386,948   15%        -          0%         471,993    10%        -          0%
Solutions
 Total         $                   $                     $                     $
                    2,513,787            1,829,761            4,459,736            3,525,122
                              % of                % of                % of                % of
REVENUE
                              Total               Total               Total               Total
Engineering,       $                   $                   $                     $
Construction and    1,660,979 58%        759,817    58%        3,091,114 61%        1,469,598 59%
Maintenance
Fabrication        675,471   24%        451,062    35%        1,170,519  23%        842,495    34%
Services
Technology        161,300   6%         88,650     7%         312,782    6%         188,703    7%
Government         353,041   12%        -          0%         527,805    10%        -          0%
Solutions
 Total         $                   $                     $                     $
                    2,850,791            1,299,529            5,102,220            2,500,796
                              % of                % of                % of                % of
INCOME FROM
OPERATIONS                    Revenue             Revenue             Revenue             Revenue
Engineering,       $                 $                  $                   $   
Construction and    81,473    4.9%       36,035     4.7%       144,685    4.7%       63,455     4.3%
Maintenance
Fabrication        66,895    9.9%       46,388     10.3%      111,919    9.6%       82,174     9.8%
Services
Technology        36,364    22.5%      22,216     25.1%      71,906     23.0%      44,815     23.7%
Government         10,664    3.0%       -          0.0%       14,656     2.8%       -          0.0%
Solutions
Total operating    $       6.9%       $        8.1%       $        6.7%       $        7.6%
groups             195,396              104,639               343,166               190,444

Acquisition-related (9,964)              (1,500)               (71,220)              (1,500)
costs
 Total          $       6.5%       $        7.9%       $        5.3%       $        7.6%
                    185,432              103,139               271,946               188,944

^(1) 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,
                                      2013                 2012
ASSETS
Current assets                        $             $       
                                      3,584,835            2,721,555
Equity investments                    96,042               97,267
Property and equipment, net           801,889              285,871
Goodwill and other intangibles, net   3,979,221            1,093,019
Other non-current assets              216,724              131,963
 Total assets                      $             $       
                                      8,678,711            4,329,675
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt  $            $        
and revolver borrowings               356,500                 -
Other current liabilities             3,930,257            1,772,522
Long-term debt                       1,675,000            800,000
Other non-current liabilities         630,032              360,843
Shareholders' equity                  2,086,922            1,396,310
 Total liabilities and             $             $       
shareholders' equity                  8,678,711            4,329,675
Chicago Bridge & Iron Company N.V.
Condensed Consolidated Statements of Cash Flows and Other Financial Data
(in thousands)
                                      Six Months
                                      Ended June 30,
                                      2013                 2012
CASH FLOWS
Cash flows from operating activities  $            $        
                                      (300,742)             28,794
Cash flows from investing activities  (1,826,975)          (33,050)
Cash flows from financing activities  1,939,717            (111,813)
Effect of exchange rate changes on    (28,786)             (2,914)
cash and cash equivalents
Decrease in cash and cash equivalents (216,786)            (118,983)
Cash and cash equivalents, beginning  643,395              671,811
of the year
Cash and cash equivalents, end of the $            $        
period                                426,609             552,828
OTHER FINANCIAL DATA
Increase in receivables, net          $            $        
                                      (205,458)            (127,796)
Change in contracts in progress, net  (221,071)            (66,746)
Increase in inventory                 (13,709)             (7,106)
(Decrease) increase in accounts       (97,355)             33,159
payable
        Change in contract capital    $            $        
                                      (537,593)            (168,489)
Depreciation and amortization        $           $        
                                      79,170               33,403
Capital expenditures                  $           $        
                                      40,867               34,187
                                      June 30, 2013        December 31, 2012
Backlog ^(1)                          $              $      
                                      24,493,372           10,928,818

^(1) 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.



Chicago Bridge & Iron Company N.V.
Reconciliation of Non-GAAP Supplemental Information
(in thousands, except per share data)
                                Three Months            Six Months
                                Ended June 30,          Ended June 30,
                                2013        2012        2013        2012
Adjusted income from
operations
 Income from operations         $185,432    $103,139    $271,946    $188,944
 Acquisition-related costs      9,964       1,500       71,220      1,500
 Adjusted income from           $195,396    $104,639    $343,166    $190,444
 operations
 Adjusted % of Revenue          6.9%        8.1%        6.7%        7.6%
Adjusted net income
attributable to CB&I
 Net income attributable to     $106,043    $ 72,320   $139,651    $131,807
 CB&I
 Acquisition-related
 transaction costs, net of tax  6,278       968         57,526      968
 ^(1)
 Adjusted net income            $112,321    $ 73,288   $197,177    $132,775
 attributable to CB&I
Adjusted net income
attributable to CB&I per share
 Net income attributable to     $   0.98  $   0.74  $   1.32  $   1.34
 CB&I
 Acquisition-related
 transaction costs, net of tax  0.06        0.01        0.54        0.01
 ^(1)
 Adjusted net income            $   1.04  $   0.75  $   1.86  $   1.35
 attributable to CB&I

         The three and six month periods ended June 30, 2013 include $9,964
         and $71,220 of acquisition-related costs, respectively, and the six
         month period ended June 30, 2013 includes $10,517 of
         acquisition-related pre-closing financing costs and one-time
^(1)     financial commitments (both included in interest expense and recorded
         in Q1). These acquisition-related transaction costs total $9,964 and
         $81,737, less the tax impact of $3,686 and $24,211, respectively. The
         per share amounts for the three and six month periods are based upon
         diluted weighted average shares of 108,392 and 105,963,
         respectively.
         The three and six month periods ended June 30,2012 include $1,500 of
         acquisition-related costs, less the tax impact of $532 . The per
         share amounts for the three and six month periods are based upon
         diluted weighted average shares of 97,632 and 98,442, respectively.

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SOURCE CB&I

Website: http://www.cbi.com
Contact: Media, www.CBI.com; Investors, Christi Thoms, +1 832 513 1200
 
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