Chicago Bridge and Iron (CBI) hosted Investor Day on Thursday March 28th to discuss the outlook for the company post the acquisition of the Shaw Group that was finalized earlier this quarter. The company offered a revised revenue guidance of $10.7 billion-$11.2 billion, to be compared to the guidance of CBI on a stand-alone basis of $6.3-$6.7 billion that was given earlier this year. CBI forecasts new awards between $13 billion and $16 billion and earnings per share between $4 and $4.35. The stand-alone projection for new awards was $7 billion-$10 billion, while the EPS guidance was $3.35-$3.65. The current backlog of the combined company is $27 billion.
During the opening presentation CEO Philip K Asherman expressed his excitement for the company going forward:
“We are certainly in a position to provide integrated solutions to our customers as never before. And although engineering and construction is a majority of the backlog, around 70% of earnings from all the other groups, which is more predictable and less cyclical.”
The stock traded at $61.97, up about 5%, on this news mid-day Thursday.