CB&I Reports Third Quarter 2009 Results

New awards for the third 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 as of September 30, up from $88.2 million at year-end 2008.

"We are pleased with the third quarter results and the diverse number of new awards year to date, reaffirming our intent to capitalize on the major projects we have been pursuing in each business sector," said Philip K. Asherman, President and CEO. "We are very confident in our ability to convert major prospects into new backlog in the fourth quarter of 2009 and in 2010, while sustaining the margins in the end markets we serve."

CB&I will host a webcast, including a slide presentation, on October 27 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss financial and operating results, and answer questions from investors. The webcast is available at www.CBI.com.

About CB&I

CB&I designs, engineers and constructs some of the world's largest energy infrastructure projects, providing a full spectrum of EPC solutions and proven process technologies. Drawing upon more than a century of experience and the expertise of approximately 17,000 employees worldwide, CB&I safely and reliably executes more than 600 projects a year through its three business sectors: CB&I Lummus builds upstream and downstream oil & gas projects, LNG liquefaction and regasification terminals, and a wide range of other energy related projects; CB&I Steel Plate Structures designs, fabricates and constructs storage tanks and containment vessels and their associated systems for the oil & gas, water & wastewater, mining and nuclear industries; Lummus Technology capitalizes on more than 1,500 patents and patent applications to provide process technologies and catalysts for petrochemical facilities, oil refineries and gas processing plants. For more information, visit www.CBI.com or access technical details at Lummus Technology Fact Sheets. If you would like to be added to CB&I's news release email distribution list, visit www.cbi.com/ir/news.htm.

This 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, 2008, 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. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                             Three Months                      Nine Months
                                                             Ended September 30,               Ended September 30,
                                                             2009             2008             2009             2008
Revenue                                                      $  1,010,401     $  1,563,709     $  3,518,490     $  4,431,594
Cost of revenue                                                 892,866          1,462,984        3,123,927        4,362,820
                     Gross profit                               117,535          100,725          394,563          68,774
                     % of Revenue                               11.6      %      6.4       %      11.2      %      1.6       %
Selling and administrative expenses                             48,292           54,854           158,778          170,964
                     % of Revenue                               4.8       %      3.5       %      4.5       %      3.9       %
Intangibles amortization                                        6,080            5,894            17,553           17,679
Other operating (income) expense, net                           (1,461    )      105              9,875            44
Equity earnings                                                 (9,852    )      (11,950   )      (28,776   )      (34,233   )
                     Income (loss) from operations              74,476           51,822           237,133          (85,680   )
                     % of Revenue                               7.4       %      3.3       %      6.7       %      -1.9      %
Interest expense                                                (4,916    )      (5,388    )      (16,019   )      (14,529   )
Interest income                                                 398              1,744            1,190            7,177
                     Income (loss) before taxes                 69,958           48,178           222,304          (93,032   )
Income tax (expense) benefit                                    (28,070   )      (37,825   )      (85,311   )      8,588
                     Net income (loss)                          41,888           10,353           136,993          (84,444   )
Less: Net income attributable to noncontrolling interests       (1,065    )      (1,799    )      (3,934    )      (5,283    )
                     Net income (loss) attributable to CB&I  $  40,823        $  8,554         $  133,059       $  (89,727   )
Net income (loss) attributable to CB&I per share:
                     Basic                                   $  0.43          $  0.09          $  1.40          $  (0.94     )
                     Diluted                                 $  0.42          $  0.09          $  1.38          $  (0.94     )
Weighted average shares outstanding:
                     Basic                                      95,727           95,341           95,205           95,754
                     Diluted                                    97,489           96,086           96,318           95,754

CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
                                Three Months Ended                                Nine Months Ended
                                September 30,           September 30,             September 30,          September 30,
                                2009                    2008                      2009                   2008
                                              % of                       % of                   % of                      % of
NEW AWARDS*                                   Total                      Total                  Total                     Total
CB&I Steel Plate Structures     $  1,433,383  87   %    $  338,427       48   %   $  1,963,712  73   %   $  1,803,860     56    %
CB&I Lummus                        109,678    7    %       220,335       31   %      491,614    18   %      936,274       29    %
Lummus Technology                  97,320     6    %       144,918       21   %      224,775    9    %      476,766       15    %
Total                           $  1,640,381            $  703,680                $  2,680,101           $  3,216,900
                                              % of                       % of                   % of                      % of
REVENUE                                       Total                      Total                  Total                     Total
CB&I Steel Plate Structures     $  383,453    38   %    $  500,489       32   %   $  1,261,458  36   %   $  1,460,475     33    %
CB&I Lummus                        528,347    52   %       952,669       61   %      1,994,994  57   %      2,634,985     59    %
Lummus Technology                  98,601     10   %       110,551       7    %      262,038    7    %      336,134       8     %
Total                           $  1,010,401            $  1,563,709              $  3,518,490           $  4,431,594
                                              % of                       % of                   % of                      % of
INCOME (LOSS) FROM OPERATIONS                 Revenue                    Revenue                Revenue                   Revenue
CB&I Steel Plate Structures     $  34,284     8.9  %    $  54,108        10.8 %   $  105,049    8.3  %   $  157,762       10.8  %
CB&I Lummus                        18,551     3.5  %       (29,623   )   (3.1 %)     75,095     3.8  %      (326,300  )   (12.4 %)
Lummus Technology                  21,641     21.9 %       27,337        24.7 %      56,989     21.7 %      82,858        24.7  %
Total                           $  74,476     7.4  %    $  51,822        3.3  %   $  237,133    6.7  %   $  (85,680   )   (1.9  %)
* New awards represents the value of new project commitments
received by the Company during a given period.

CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                                    September 30,       December 31,
                                                                    2009                2008
ASSETS
Current assets                                                      $      1,188,900    $      1,191,115
Equity investments                                                         132,084             130,031
Property and equipment, net                                                329,191             336,093
Goodwill and other intangibles, net                                        1,186,190           1,198,674
Other non-current assets                                                   144,123             144,805
                         Total assets                               $      2,980,488    $      3,000,718
LIABILITIES AND SHAREHOLDERS' EQUITY
Revolver borrowings and notes payable                               $      2,326        $      523
Current maturity of long-term debt                                         40,000              40,000
Other current liabilities                                                  1,658,948           1,947,602
Long-term debt                                                             120,000             120,000
Other non-current liabilities                                              348,579             318,740
Shareholders' equity                                                       810,635             573,853
                         Total liabilities and shareholders' equity $      2,980,488    $      3,000,718
CHICAGO BRIDGE & IRON COMPANY N.V. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND OTHER
FINANCIAL DATA
(in thousands)
                                                                    Nine Months
                                                                    Ended September 30,
                                                                    2009                2008
CASH FLOWS
Cash flows from operating activities                                $      107,845      $      94,345
Cash flows from investing activities                                       (16,877   )         (80,693   )
Cash flows from financing activities                                       32,844              (77,163   )
Increase (decrease) in cash and cash equivalents                           123,812             (63,511   )
Cash and cash equivalents, beginning of the year                           88,221              305,877
Cash and cash equivalents, end of the period                        $      212,033      $      242,366
OTHER FINANCIAL DATA
Decrease in receivables, net                                        $      64,838       $      66,867
Change in contracts in progress, net                                       (51,173   )         45,085
Increase in non-current contract retentions                                (3,438    )         (15       )
(Decrease) increase in accounts payable                                    (160,403  )         93,019
                         Change in contract capital                 $      (150,176  )  $      204,956
Depreciation and amortization expense                               $      59,941       $      58,042
Capital expenditures                                                $      36,133       $      82,057
Backlog *                                           $ 4,866,422   $ 6,199,040
* 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.

SOURCE: CB&I

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