CB&I Reports Third Quarter 2009 Results

CB&I (NYSE: CBI) today reported net income of $40.8 million, or $0.42 per diluted share, for the third quarter of 2009, compared with $8.6 million, or $0.09 per diluted share, in the third quarter of 2008. Revenue for the quarter was $1.0 billion compared with third quarter 2008 revenue of $1.6 billion.

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.