Chicago Bridge & Iron’s Net Loss Fell in 2016
Chicago Bridge & Iron Company’s (CBI) pre-tax loss fell 53.6% to $237.3 million in fiscal 2016, from $511.2 million in fiscal 2015. The pre-tax income in 2016 was lower in the United States, where the tax rates are higher.
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Net loss fell
The decline in pre-tax loss translated to a fall in net loss as well. CBI posted a net loss of $239.8 million in fiscal 2016 compared to $429.9 million in fiscal 2015. On a per-share basis, its net loss was $3.05 in fiscal 2016 compared to $4.72 in fiscal 2015.
In fiscal 2017, the company is expected to report a net loss per share of $2.30. However, its peers are expected to report profits in fiscal 2017. KBR (KBR) and Fluor (FLR) are expected to report EPS (earnings per share) of $1.42 and $1.50, respectively, in fiscal 2017. The Jacobs Engineering Group (JEC) is expected to report EPS of $3.50 in fiscal 2017.
CBI’s cash flows depend on the major construction and service contracts it receives. Cash from operating activities was $654.5 million in fiscal 2016 compared to $56.2 million in fiscal 2015. That was due to cash generated from earnings and a net change of $282.1 million in accounts receivable, inventory, accounts payable, and net contracts in progress account balances. The rise was partially offset by a net increase of $229.1 million in other current and non-current assets.
Chicago Bridge & Iron spent $52.5 million on capital expenditure in fiscal 2016 compared to $78.9 million in fiscal 2015. In 2017 and 2018, the company anticipates no material capital expenditures related to environmental issues.
CBI expects anticipated future operating cash flows and capacity under revolving and other credit facilities to be sufficient to finance any future capital expenditures, settle commitments and contingencies, and address working capital needs for the foreseeable future.
In the next part of this series, we’ll take a look at Chicago Bridge & Iron’s debt and liquidity profile.