CB&I 3Q profit jumps despite plunge in revenue

Chicago Bridge & Iron 3rd-quarter profit jumps as cost cutting offset plunge in revenue

• On 6:52 pm EDT, Tuesday October 27, 2009

THE WOODLANDS, Texas (AP) -- Engineering and construction firm Chicago Bridge & Iron Co. said Tuesday its third-quarter profit jumped as cost cutting offset a 35 percent plunge in revenue.

The company earned $40.8 million, or 42 cents per share, compared with $8.6 million, or 9 cents per share, a year ago.

Revenue dropped 35 percent to $1.01 billion from $1.56 billion a year ago.

Analysts expected the company to earn 39 cents per share on sales of $1.11 billion, according to a Thomson Reuters survey.

With less work, the company cut sales-related costs 39 percent, although overhead shrank by a more modest 12 percent.

CB&I, headquartered in the Netherlands, said it got awards valued at $1.6 billion in the quarter, including a $550 million deal for a liquefied natural gas facility in Australia and a $530 million deal in Abu Dhabi.

CEO Philip K. Asherman said the company was pleased with the new awards and was confident it can convert prospective deals into new backlog in the rest of 2009 and 2010.

Its shares fell 82 cents, or 4.1 percent, to close at $19.17 in regular trading, then after the report came out they gained $1.03, or 5.4 percent, to $20.20 in extended trading.

They have ranged from $4.64 to $21.44 in the past year.

Buzz up!