Chicago Bridge & Iron Company N.V. (NYSE: CBI) shares went down sharply Thursday, after the company posted a surprise loss for its second quarter and reported its intent to sell its technology unit.
Figures released Wednesday showed revenue of $1.3 billion in the second quarter of 2017, compared to $2.2 billion in the second quarter of 2016. CB&I reported a net loss of $304.1 million, or $3.02 per diluted share, in the second quarter of 2017, compared to net income of $115.6 million, or $1.09 per diluted share, in the second quarter of 2016.
New awards in the second quarter of 2017 totaled $1.1 billion, compared to $1.3 billion in the second quarter of last year. Backlog at June 30, 2017, was $13.6 billion, compared to backlog of $14.7 billion at June 30, 2016.
Said CEO Patrick K. Mullen, Patrick K. Mullen, "we have initiated a comprehensive cost reduction program and suspended our dividend. We are injecting additional rigor and discipline into our execution and risk management processes, further strengthening the integration between our (Engineering & Construction) E&C and Fabrication Services operating groups, and accelerating the implementation of innovative practices and technologies.
“We remain committed to our integrated self-perform model, which we believe will enable us to generate attractive earnings and cash flows over time.”
The company also announced Wednesday that it is initiating a comprehensive corporate and operating expense reduction program expected to generate cost savings of approximately $100 million on an annualized basis.
Shares in the company plummeted $4.79, or 29.3%, to $11.54.
