CB&I First Quarter 2005 Earnings Increase 8%
biz.yahoo.com
Wednesday April 27, 6:00 am ET
New Business Tops $1.4 Billion; Revenue Up 8%; Backlog Doubles
THE WOODLANDS, Texas--(BUSINESS WIRE)--April 27, 2005-- CB&I today reported net income increased 8% to $15.8 million or $0.16 per diluted share for the first quarter ended March 31, 2005, compared with $14.6 million or $0.15 per diluted share for the comparable period in 2004. Per share numbers have been adjusted for the two-for-one stock split which took effect March 31, 2005.
For the quarter ended March 31, 2005, new business more than tripled to $1.4 billion, compared with $348 million in 2004. New business during the quarter included the previously announced LNG import terminal in the U.K., the second phase award for an LNG import terminal in Wales and significant clean fuels awards in North America. Backlog at March 31, 2005, increased 118% to $3.3 billion, compared with $1.5 billion at the end of the year-earlier period.
"We're pleased to report that CB&I is off to a great start for 2005," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "With record backlog going into the year, another very strong quarter for new business, and with earnings and revenue on target for the quarter, we anticipate the Company's performance will continue to improve."
Revenue for the first quarter of 2005 increased 8% to $478.8 million from $443.6 million in the first quarter of 2004. Revenue grew 18% in the North America segment as a result of higher backlog going into the year, progress on U.S. LNG projects and turnaround work. Revenue increased 14% in the Company's Europe, Africa, Middle East (EAME) segment, due mainly to the ramp-up of LNG work in the U.K. Revenue declined 36% in the Asia Pacific (AP) segment, as several major projects in Australia wound up in 2004, and was 21% lower in the Central and South America (CSA) segment.
Income from operations in the first quarter of 2005 increased 12% to $25.1 million, compared with $22.4 million in the year-earlier period, due to higher volume, project mix and a lack of significant project cost provisions as experienced in 2004.
CB&I had $154.9 million of cash in excess of debt at March 31, 2005. The Company had cash and cash equivalents of $237.4 million at the end of the first quarter of 2005, compared with $81.8 million at the end of the first quarter of 2004. Capital expenditures for the first quarter were $5.7 million, compared with $2.7 million in the year-earlier period.
"Continued international growth in natural gas demand is providing us with abundant opportunities in the worldwide LNG market," Glenn added. "In addition, refiners are spending capital to comply with stricter environmental regulations for transportation fuels, and also to upgrade and revamp their process capabilities to meet growing demand and handle heavier and more sour grades of crude oil. Our comprehensive EPC capabilities and proven technologies have positioned us well to respond to these market drivers and meet the needs of our customers worldwide." |
