Highlights from the results include the following:
- A 78% increase in net income compared to 1Q17.
- Solid operating performance in fabrication services, technology and E&C groups, including no material charges on Cameron LNG, Freeport LNG and Calpine power projects.
- Cost reduction program and higher margin mix yield gross margin improvement of 170 basis points versus 1Q17.
- 12% decrease in sales and administrative expense compared to 1Q17.
- Company engaged in a high level of bidding activity, with an attractive prospect list for 2018.
- Combination with McDermott International expected to close in May, subject to the receipt of CB&I and McDermott stockholder approvals and satisfaction of all other closing conditions.
In the statement, CB&I claims that it reported a net income of US$43.9 million (or US$0.43 per fully diluted share) for 1Q18, consistent with the preliminary results released by the company on 12 April this year.
Results for 1Q18 compare to net income of US$24.7 million (or US$0.24 per fully diluted share) in 1Q17.
The President and CEO of CB&I, Patrick Mullen, said: “We are pleased with the strong execution across all three of our operating groups, relative to the year-ago quarter, which resulted in a 78% increase in net income. Our results reflect an increase of 170 basis points in gross margin due to a higher margin mix and the benefits of our US$100 million cost reduction program, which was fully implemented as of the end of 2017. The cost reduction program also contributed to a 12% decline in selling and administrative expense.
“We are also pleased to report an attractive prospect list for 2018. We are engaged in a high level of bid activity, and we expect customer investment decisions to be forthcoming on a number of very large projects in LNG, petrochemical and other markets. As we drive improvements across our business, we are also working toward an expected completion of the combination with McDermott in May of this year.”
Read the article online at: https://www.worldfertilizer.com/product-news/24042018/cbi-releases-1q18-financial-results/