- Chicago Bridge & Iron Co., which designs plants and infrastructure for the energy sector, said late Tuesday profits grew 80 percent in the third quarter on increased investment by energy companies.
- Net income for the period ended Sept. 30 was $58.7 million, or 61 cents per share, up from $32.4 million, or 33 cents per share, in the prior-year period. Analysts polled by Thomson Financial expected earnings of 47 cents per share.
- Revenue for the quarter rose 36 percent to $1.17 billion from $861 million. Analysts had expected $1.1 billion in revenue.
- Chicago Bridge said it had a backlog of $6.4 billion in contracts at the end of quarter, compared with $4.6 billion in the same quarter of 2006.
- The company also raised its 2007 profit guidance.
- raised its full-year earnings guidance to a range of $1.60 to $1.75 per share. The company's previous guidance was for income between $1.50 and $1.65 per share.
Just to emphasize the point, CBI announced a nearly $375 million contract in Australia this morning. Remember, keep thinking where the money is going - energy producers and farmers. Where are they spending it? Invest in those spots. That's what I am going to be doing. Even with today's 7% increase, at $48 the stock trades at 22x 2008 estimates of $2.13 - however we should expect a higher 08 estimate in the near future. I'd be interested in getting into this name under $46.
Long Foster Wheeler, McDermott, KBR in fund; long KBR in personal account
