Chicago Bridge & Iron (CB&I) on Wednesday reported $123.8 million in net income for the second quarter of 2016, down from $169.5 million during the same quarter last year. This corresponds to income of $1.17 per diluted share in the latest quarter, falling from $1.55 in the second quarter of 2015.
Revenue landed at $2.7 billion in the quarter, down from $3.2 billion year over year. The company also said its total debt was $2.3 billion, a 10 percent decrease since the end of last year.
Global nuclear plant technology supplier Westinghouse Electric announced in January that the U.S. government had approved the company’s acquisition of CB&I Stone & Webster, CB&I’s nuclear construction business, and would continue its nuclear power plant construction contracts in the U.S. and abroad.
The acquisition did not impact CB&I’s participation in construction of the Mixed Oxide Fuel Fabrication Facility at the Savannah River Site in South Carolina, which is being built to convert surplus weapon-grade plutonium into fuel for commercial nuclear power plants. CB&I Areva MOX Services is the contractor designing and constructing the facility.
CB&I’s four operating groups offer engineering, construction, infrastructure, equipment, and other services for customers in the energy, oil and gas, and power industries, as well as government and private sector projects.
CB&I last week sued Westinghouse over the latter’s claim that the company underestimated the cost of two nuclear projects and therefore owes it $2 billion. The acquisition agreement between the two companies released CB&I from all project liabilities.
Westinghouse interim president and CEO José Emeterio Gutiérrez said in response that “Westinghouse has fully met, and will continue to fully meet, all of its obligations under the Purchase Agreement between the parties.”
Calling CB&I’s allegations “inconsistent” with the terms of the deal, he said, “We believe the delays resulting from CB&I’s attempts to circumvent the agreed process are an unnecessary and ineffective use of time and resources.”
Analysts have said the litigation would likely cause an overhang on shares, meaning investors expect the company’s stock price to decline. CB&I’s share price was $34.41 at Thursday’s close.
CB&I said it is lowering its 2016 guidance because “energy customers continue to defer the timing of new projects.” CB&I’s new outlook includes $10.6 billion – $11 billion in revenue and $4.70 – $5 earnings per diluted share.
