Chicago Bridge & Iron Company N.V. (CBI) has reported a 76.94 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $24.66 million, or $0.24 a share in the quarter, compared with $106.92 million, or $1.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.66 million, or $0.24 a share compared with $106.92 million or $1.01 a share, a year ago.
Revenue during the quarter dropped 14.39 percent to $1,827.35 million from $2,134.63 million in the previous year period. Gross margin for the quarter contracted 371 basis points over the previous year period to 8.26 percent. Total expenses were 95.68 percent of quarterly revenues, up from 91.97 percent for the same period last year. That has resulted in a contraction of 370 basis points in operating margin to 4.32 percent.
Operating income for the quarter was $78.99 million, compared with $171.33 million in the previous year period.
However, the adjusted operating income for the quarter stood at $98.03 million compared to $187.94 million in the prior year period. At the same time, adjusted operating margin contracted 344 basis points in the quarter to 5.36 percent from 8.80 percent in the last year period.
"Each of our operating groups reported solid earnings for the quarter with the exception of Engineering & Construction, which was negatively impacted by underperformance on two union construction projects. Overall, new awards exceeded our expectations, indicating the rebound of opportunities in our end markets, specifically in the United States, Middle East and China," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "I'm especially proud of our outstanding safety record, having performed more than 51 million work hours with zero lost-time incidents in the past six months."
For financial year 2017, Chicago Bridge & Iron Company N.V. projects revenue to be in the range of $9,500 million to $10,500 million. The company forecasts diluted earnings per share to be in the range of $3.50 to $4.
Operating cash flow turns negative
Chicago Bridge & Iron Company N.V. has spent $290.68 million cash to meet operating activities during the quarter as against cash inflow of $141.85 million in the last year period.
The company has spent $43.30 million cash to meet investing activities during the quarter as against cash outgo of $47.50 million in the last year period.
Cash flow from financing activities was $227.58 million for the quarter as against cash outgo of $11.39 million in the last year period.
Debt comes down marginally
Chicago Bridge & Iron Company N.V. has recorded a decline in total debt over the last one year. It stood at $2,407.36 million as on Mar. 31, 2017, down 2.66 percent or $65.68 million from $2,473.04 million on Mar. 31, 2016. Total debt was 29.85 percent of total assets as on Mar. 31, 2017, compared with 26.08 percent on Mar. 31, 2016. Debt to equity ratio was at 1.49 as on Mar. 31, 2017, up from 1.08 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.28 for the quarter from 8.54 for the same period last year.
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