CB&I reports drop in third-quarter profit
LNG engineer Chicago Bridge & Iron (CB&I) reported net income of $10 million for the third quarter of 2017.
Compared to the corresponding quarter when the company reported a net income of $121.8 million, CB&I’s profit dropped significantly due to the restructuring charges of $27 million related to the company’s cost reduction program, and excess interest expense of $22 million.
CB&I’s president and CEO Patrick Mullen noted that the company’s “cost reduction program is on track, with a positive impact on our financial performance already apparent.”
Revenue for the third quarter of 2017 was $1.7 billion, compared to revenue of $2.1 billion in the third quarter of 2016.
New awards in the third quarter of 2017 totaled $437 million, compared to $1.7 billion in the third quarter of last year. Backlog at September 30, 2017, was $10.7 billion, compared to backlog of $13.2 billion at September 30, 2016.
The company currently expects revenue for the fourth quarter of 2017 to be between $1.8 and $2.0 billion. The company’s updated guidance for the fourth quarter of 2017 includes continuing and discontinued operations but excludes the continuation of incremental interest expense and any additional restructuring charge that may be required. Guidance also excludes any significant benefits from the cost reduction program, which are expected to be fully realized in 2018.