Tuesday, engineering and construction company Chicago Bridge & Iron Company N.V. (CBI) said its profit surged for the third quarter from a year-ago period due to lower selling and administrative costs and lower interest expenses, despite a decline in revenue.
Netherlands-based Chicago Bridge & Iron's profit increased to $40.8 million from $8.6 million in the year-ago period. On a per share basis, net income shot jumped to $0.42 from $0.09 a year ago. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.39 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the quarter declined to $1.0 billion from $1.6 billion last year, short of analysts' expectations of $1.11 billion.
Segment wise, CB&I Steel Plate Structures revenue declined 38% to $383.45 million from $500.48 million, CB&I Lummus revenue declined 52% to $528.34 million from $952.66 million last year. Lummus Technology revenue for the quarter declined 10% to $98.60 million from $110.55 million in the year-ago period.
Operating income advanced to $74.47 million from $51.82 million, while gross profit increased to $117.53 million from $100.72 million in the year-ago quarter.
New awards for the quarter totaled $1.6 billion, including CB&I's $550 million Gorgon LNG contract in Australia and the $530 million GASCO award in Abu Dhabi.
Cash and cash equivalents increased to $212.0 million at September 30, 2009, from $88.2 million at year-end 2008.
For the nine-month period, CB&I turned to a profit of $133.05 million or $1.38 per share from a loss of $89.72 million or $0.94 per share in the year-ago period. Revenue declined to $3.51 billion from $4.43 billion.
CBI closed Tuesday's regular trading session at $19.17, down $0.82, on the NYSE.
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