Chicago Bridge & Iron Company (CBI) saw its loss widen to $665.69 million, or $6.65 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $65.72 million, or $0.63 a share. On the other hand, adjusted net income for the quarter stood at $85.60 million, or $0.85 a share compared with $133.44 million or $1.26 a share, a year ago. Revenue during the quarter dropped 22.44 percent to $2,540.03 million from $3,274.96 million in the previous year period. Gross margin for the quarter contracted 702 basis points over the previous year period to 4.62 percent. Operating margin for the quarter stood at negative 30.26 percent as compared to a negative 2.02 percent for the previous year period.
Operating loss for the quarter was $768.51 million, compared with an operating loss of $66.06 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.64 million compared to $227.28 million in the prior year period. At the same time, adjusted operating margin contracted 558 basis points in the quarter to 1.36 percent from 6.94 percent in the last year period.
"The fourth quarter was impacted by charges for material increases in cost-to-complete estimates in our Engineering & Construction and Fabrication Services operating groups," said Philip K. Asherman, CB&I's president and chief executive officer. "Despite this result, operating cash flow was extremely strong both in the quarter and for the year. In addition, upon financial close we will allocate the entire proceeds from the recently announced divestiture of our Capital Services business to reducing debt consistent with our stated objective of optimizing the balance sheet for future growth. I'm optimistic that stability in commodity prices and continuing development of major capital programs, particularly in North America and the Middle East, will result in resumption of substantial backlog growth by mid-year of 2017."
For fiscal year 2017, Chicago Bridge & Iron Company N V forecasts revenue to be in the range of $9,500 million to $10,500 million. The company expects diluted earnings per share to be in the range of $4 to $4.60.
Operating cash flow turns positive
Chicago Bridge & Iron CompanyN V has generated cash of $654.46 million from operating activities during the year as against cash outgo of $56.21 million in the last year. The company has spent $169.29 million cash to meet investing activities during the year as against cash outgo of $381.68 million in the last year.
The company has spent $482.17 million cash to carry out financing activities during the year as against cash inflow of $697.40 million in the last year period.
Cash and cash equivalents stood at $505.16 million as on Dec. 31, 2016, down 8.19 percent or $45.06 million from $550.22 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Chicago Bridge & Iron CompanyN V was negative $1,994.50 million on Dec. 31, 2016 compared with negative $1,489.65 million on Dec. 31, 2015. Current ratio was at 0.56 as on Dec. 31, 2016, down from 0.69 on Dec. 31, 2015.
Debt comes down
Chicago Bridge & Iron CompanyN V has recorded a decline in total debt over the last one year. It stood at $2,199.33 million as on Dec. 31, 2016, down 15.17 percent or $393.37 million from $2,592.70 million on Dec. 31, 2015. Total debt was 28.05 percent of total assets as on Dec. 31, 2016, compared with 28.17 percent on Dec. 31, 2015. Debt to equity ratio was at 1.41 as on Dec. 31, 2016, up from 1.20 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
