Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message| ()  

Executives

Philip Asherman – President and CEO

Lasse Petterson – Chief Operating Officer

Dan McCarthy – President, Lummus Technology

Ron Ballschmiede – Chief Financial Officer

Analysts

Andy Kaplowitz – Barclays Capital

Jamie Cook – Credit Suisse

Steven Fisher – UBS

George O'Leary – Tudor, Pickering

Michael Dudas – Sterne Agee

Brian Konigsberg – Vertical Research

Scott Levine – JP Morgan

Joe Ritchie – Goldman Sachs

John Allison – BB&T Capital Markets

Matt Tucker – KeyBanc Capital

Chicago Bridge & Iron Company N.V. (CBI) Q2 2012 Results Earnings Call July 24, 2012 5:00 PM ET

Operator

Good afternoon. My name is Holly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Chicago Bridge and Iron Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions).

Before beginning today's call, the company would like you to caution you regarding forward-looking statements. Any statements made or discussed today that do not constitute or are not historical facts, particularly comments regarding the Company's future plans and expected performance, are forward-looking statements that are based on assumptions that company believes are reasonable, but are subject to a range of uncertainties and risks that are summarized in the company's press release and SEC filings, while forward-looking statements represent management's best current judgment as to what may occur in the future, the actual outcome or results may differ materially from what is expressed or implied in any such statements.

Now, I would like to turn the call over to Mr. Philip Asherman, President and CEO of Chicago Bridge and Iron. Please go ahead, sir.

Philip Asherman

Good afternoon and thank you for joining us as we report Chicago Bridge and Iron's results for the second quarter 2012. With me today are CB&I's Chief Operating Officer, Lasse Petterson, who will report on our project engineering and construction, and Steel Plate Structure sectors. Dan McCarthy, President of Lummus Technology, reporting on the sector's result and outlook, and our Chief Financial Officer, Ron Ballschmiede, who will discuss our second quarter financial performance and outlook for the year. We will then open the call for your questions.

I am pleased to report that second quarter results were strong across the entire business, with backlog and net income reaching an all time high compared to any previous quarter since the company went public in 1997. Our new awards for the quarter were a mix of announced projects of over $500 million. Growth on existing projects of nearly $750 million, with another $600 million of smaller underpinning works spread across the three business sectors.

We also got off to a great start for the third quarter by a recent announcement of the $225 million (inaudible) project in New South Wales, Australia. The backlog, which now exceeds $10 billion is long term and durable. We have the opportunity in front of us to significantly grow the backlog, with potential awards to some very meaningful projects over the next year, as LNG development in Australia and the United States move forward, and new regions, particularly East Africa, started getting some traction.

The same thing could be said about the burgeoning gas process and petrochemical businesses in the U.S., and increasing engineering opportunities in offshore pipelines, and new opportunities for our global tank and storage business.

But in all the excitement around the mega projects and developing end markets, I want to highlight the outstanding performance of Lummus Technology. Driven by some very important new awards this quarter, totaling over $300 million and producing 25% on income from operations, this sector continues to underpin our income stream cash flows, while providing critical visibility into future energy CapEx and opportunities around the world. Dan will give you the detail in a minute.

I am also pleased to report that we continue to record outstanding safety performance around the world. Year-to-date, and on nearly $40 million man hours at work, CB&I remains in the top tier, of one of the safest companies in the industry, and as I have repeatedly said, we are firm in our belief that our relentless focus on safety as a primary core value, and our goal of 'Nobody Gets Hurt' at CB&I, is not only a tremendous competitive advantage, but drives recruiting, retention, and client confidence, and most importantly, it's just the right thing to do for our employees.

Now as we have done in previous years, we take the same quarter report as an opportunity to calibrate our guidance, given the increased visibility into our current backlog and potential new awards, and I am pleased to report that we see the year unfolding as we had projected in our original guidance last November. In addition to engineering and construction awards, we are experiencing tremendous results from technology, steel plate structures, engineering awards, and significant growth on existing projects, which when consolidated have a meaningful impact on the quarter and our outlook for the year.

So we are reaffirming our new awards guidance for the year, of $5.5 billion to $7 billion, and have narrowed the range for revenue to $5.4 billion to $5.6 billion, and earnings per share to $2.85 to $3.05.

So I will ask Lasse and Dan to walk you around the backlog and new awards, and then Ron will summarize the financial reports. Lasse?

Lasse Petterson

Thank you, Phil. Good afternoon. As in the last earnings call, I gave my comments on some trends in our key markets, including the new awards this quarter, and then provide a brief update on some of our larger ongoing projects.

Global market trends are positive, in all our seven primary end markets. As reported last quarter, the LNG trade is projected to continue growing at a rate twice as fast as natural gas production, but the LNG portion of gas supply forecasted to increase approximately 20% over the next two decades. This will provide us with good EPC product opportunities, and we have positioned CB&I well for this EPC contracts, by winning and executing six LNG liquefaction FEED studies the last year.

In the second quarter, we completed the Browse and Arrow FEEDs for Australia. On Browse, we also completed our full EPC tender for the onshore development that James Price Point invested in Australia, and our client, Woodside, has confirmed fourth quarter 2012 for the selection of their EPC contract for Browse. You have probably seen that Browse had an EPA approval last week. On Arrow, we will compile an EPC tender to be complete first half of 2013, with EPC contract selection following in the second half of next year.

We also completed the Yamal FEED for the full onshore development on the Yamal peninsula in the North of Russia. Our client, NOVATEK, has issued their call for tender for the EPC development, which is due later this year, with planned award end of fourth quarter. It was recently reported in Russian business press, that the Russian government would invest in a private-public partnership for the dredging and marine facilities at Sabetta, which is key to the Yamal LNG project.

In North America, shale gas production and low gas prices that resulted at a number of LNG import terminals, planned to be converted to export terminals. We are in the midst of executing the LNG FEED studies for the conversion of the terminals in Freeport and ECHO Point.

We are also following LNG opportunities in Western Canada, and in East Africa, where we have submitted a tender for a FEED study, for a multi-train development by Anadarko in Mozambique.

The shale gas production with liquids rich gas has also resulted in a surge of new petrochemical projects in the U.S. We have been awarded contracts from both Williams and Westlake for ethylene production expansion. For the Williams, we won a contract valued in excess of $300 million, for revamping their existing Williams ethylene complex in Geismar, Louisiana. The expansion will increase the olefins plant capacity from 1.3 billion pounds per year, to 1.9 billion. For Westlake, we are installing new capacity at the Westlake Petrochemical Complex in Sulphur, Louisiana. The market for petrochemicals is also increasing in Russia, where we have been awarded a $40 million ethylene FEED contract for [MKNK]. The offshore oil and gas market is continuing to be strong, with large developments planned particularly in Brazil and in the North Sea.

In the quarter, we were awarded a contract by Talisman for the topsides and the bridge linked platform details assigned for the Montrose Field in the UK sector, which adds nicely to the award of the Luva Topsides FEED that we announced in last quarter. In Malaysia, we were awarded a contract to develop a FEED study and an EPC tender for a floating LNG facility for PETRONAS.

In Canada, we were awarded an additional contract in excess of $300 million for supply of the interconnecting modules for the Kearl Oil Sands Project and we will tender for the subsequent installation later this year.

New awards in the quarter totaled $1.8 billion, which increased our backlog to above $10 billion with a good mix between reimbursable and lump sum contracts. In addition to the new contract awards as mentioned, we had scope adjustments on existing projects in excess of $750 million. We announced yesterday a good start to the third quarter, with award of a contract valued at $225 million for a peak sharing facility in Tomago in New South Wales in Australia.

Moving on to our existing projects, I will start with our Project Engineering and Construction business sector. The construction work on REFICAR's new 150,000 barrels per day refinery in Cartagena, Colombia, is progressing well. 43 of 84 process modules from fabricating at our fabrication yard in Beaumont have been received and installed at site. Engineering is close to being completed in our Houston office and our manpower at the project currently exceeds 6,500.

In Canada, the Kearl initial phase construction work is now complete. We have received several of the client-supplied equipment modules, and the hookup work is proceeding on schedule to be completed this year. Engineering work in Houston on our Kearl expansion project is progressing as planned and we have begun work in the field north of Fort McMurray.

In the U.S., Occidental's Elk Hills gas processing plant in California is complete, and the facility has been started up by the client. At Dominion's gas processing facility in Natrium, West Virginia, construction is well underway and we are working towards first gas in the plant in December this year.

In Europe, the refinery expansion for shale in Pernis, Rotterdam has been completed and the NIS Pancevo Oil Refinery Modernization Project in Serbia is scheduled to be completed this year.

In the UK, we are being contracted to install an additional LNG import pipeline at the Isle of Grain Terminal and the work is executed on a reimbursable basis and the project is proceeding on schedule.

In Papua New Guinea, on Exxon's Hides gas conditioning plant in the Highlands, construction is ongoing. Engineering is complete and procurement of materials and equipment has been finalized and ready to be shifted to site.

Shifting to our Steel Plate Structures business sector, progress on our two new nuclear projects, Vogtle and Summer, has been good in the period, with welding work on the container vessels continuing well.

In Canada and in the U.S., we have several large conventional storage tanks contracts, all of which are progressing on schedule.

In the Middle East, the GASCO project in Abu Dhabi is coming to a successful completion. All tanks have been purged with nitrogen and the project is scheduled to be finished this year, well ahead of the original schedule.

Additionally, we have several large conventional storage tank projects underway in Saudi Arabia and Abu Dhabi, including 90 tanks as part of Takreer's refinery expansion in Ruwais and Mussafah. Construction and fabrication are in progress and scheduled to be completed in 2012 and 2013.

On Gorgon MEI, we have mobilized more than 300 strong management team in Perth and we have received and installed the first modules on Barrow Island. This is a construction-only scope for us with all engineering, materials, logistics and process modules fabrication provided by the client. The majority of the construction scope will be performed in 2013 and '14, and at peak, more than 4,000 CB&I employees will be engaged on the project.

We are also constructing two LNG tanks for the Gorgon project on Barrow Island. Welding of the out-of-tank shells on the first tank is complete and the-roof raise is planned for early August. The roof raise for the second tank is planned for October, well ahead of the next cyclone season.

Work on Barrow Island has as previously reported, had a slower ramp up than initially planned transferring some work scope into 2013 and '14. This change is included for in our current manpower planning for the project.

On Curtis Island on the East Coast of Australia we are erecting two LNG tanks for ConocoPhillips APLNG project. The tank foundations are in place and we have started welding the outer tank walls. The project is progressing ahead of schedule.

In Papua New Guinea, we are building the two LNG storage tanks for Exxon's LNG project on the coast at Port Moresby. The gas from the PNG gas plant in the Highlands will be processed here and then shipped to the market. The air-raise on both LNG tanks has been completed in the period and the project is on schedule.

I will now hand over to Dan to comment on Lummus Technology.

Dan McCarthy

Thank you, Lasse. Good afternoon to everyone. Those that have reviewed the sector results in our press release would have noticed that Lummus Technology's second quarter new awards exceed previous quarter's by wide margin. This should not be too surprising because we ended the quarter with a flurry of new project announcements.

While our new awards contain substantial heat transfer equipment bookings, the licensing side was by far the bigger component. I attribute this success to two developments. First and foremost is the award of our first paraxylene license. We have always been an active licensor on the olefin side of petrochemicals, but now paraxylene opens up the aromatics value chain to us.

Reliance Industries of India, a major producer of paraxylene and polyester, licensed a suite of three technologies from Lummus to build the world's largest paraxylene plant. Compared to many other technologies, the value of this licensed package and catalyst sale is high, thus explaining a significant part of our growth in new awards.

The second factor is the release of a number of contracts that were in development for the last six to nine months. Although the new awards value for the first quarter was good, it mainly consists of heat transfer equipment. The large increase from licensing bookings for our heritage business in the second quarter catches up for a slower than usual first quarter.

Ethylene activity remained strong in the second quarter. We booked grassroots projects in Malaysia and Russia and expansion in Southeast Asia and a pyrolysis heater supply contract in Egypt.

Consistent with our vision to be a total technology supplier to olefins producers, these projects include licenses for associated technologies such as butadiene extraction, high-purity isobutylene, aromatics dealkylation and other small units. While there were not any new ethylene awards in United States, we continue to follow number of ethylene prospects which should move forward in the next six to 18 months.

Propylene technologies did generated good business in the United States. We licensed a large propane dehydrogenation plant, which will be built by Enterprise. This facility will convert the propane component of natural liquids to propylene. We believe that there are additional opportunities for propane dehydrogenation in North America.

For those more technically inclined, we also have licensing new technology this quarter. Many of our customers produce propylene via metathesis technology. Often, production in these plants is limited by the availability of C4 feedstock. We have developed and licensed a new process called CDIsis, which enables us to utilize a greater proportion of the C4 byproducts streams at feedstocks to these metathesis units, we see this as a valuable debottleneck tool for many of our existing licensees.

With all this emphasis on petrochemicals, I do not want to ignore Refining, Residue Upgrading and hydro-processing investments continued to proceed. Our non-consolidated joint venture, CLG, performed above expectations, well actually based on lubes licensing and catalyst sales. Our delayed coking business remains active and we are seeing increased interest in our Proprietary Devices for fluid catalytic crackers.

From an earnings perspective, we produced solid results. With the strong growth and license backlog as well as on-hand purchase orders for a large catalyst shipment in the fourth quarter, Lummus Technology is poised to generate revenues and earnings growth in the second half of this year.

Thank you, and I'll turn it over to Ron.

Ron Ballschmiede

Thanks, Dan. And good afternoon, everyone. With that overview of our significant project activities around the world, let me take you through our solid financial results, which were included in our second quarter earnings release.

Revenue for the second quarter was $1.3 billion up $214 million or 20% over the second quarter of 2011. The revenue increase reflects our higher beginning of the period backlog and the continued increase of construction activities on our major projects. We expect this increasing project activity to continue throughout 2012, providing sequential quarterly revenue growth consistent with the underpinning and tightening of our full year revenue guidance.

Based on our revenue today and expected backlog burn in the second half of 2012, we increased the lower end of our revenue range by $200 million providing new 2012 revenue guidance of $5.4 billion to $5.6 billion. The increase in our gross profit for the quarter was primarily driven higher revenues from our Project Engineering and Construction sector and total $159 million, the highest – second highest in our history. Gross profit totaled $140 million in the comparable 2011 quarter. Each of our sectors continued to benefit from the solid projects – project execution and are performing consistent with our expectations.

The decline in our first quarter gross profit percentage to 12.2% from 12.9% in the second quarter of 2011 reflects the changing relative revenue contribution of our sectors. Specifically, and as we expected approximately 80% of our quarter-over-quarter revenue growth came from our Project Engineering and Construction sector, which accounted for 55% of our consolidated revenue compared to 50% in the comparable periods 2011. I'll come back and discuss changes in our revenue and operating income, by business sector in a moment.

Selling and administrative expenses increased $3.9 million from the second quarter of 2011 and totaled $52.4 million. The change reflects increases in our business development efforts, global administrative support costs and global inflation. Selling and administrative expenses as a percent of revenue was 4% for the quarter, compared to 4.5% for the comparable quarter of 2011.

We continue to expect our full year 2012 selling and administrative expenses to be approximately 4% of revenues down from 4.5% for full year of 2011. Second quarter income from operations increased 17% to $103.1 million or a solid 7.9% of revenues compared to $88.4 million in the second quarter of 2011.

Our income tax rate for the quarter was 29% consistent with the 28% to 32% range discussed historically and consistent with our expectations for the full year. The summation of [low lab] results in the second quarter net income of $72.3 million or $0.74 per diluted share, and year-to-date net income of $131.8 million, or $1.34 a share.

Each of the aforementioned earnings reflect a strongest second quarter and first six months results in our history. EBITDA totaled a $119.9 million for the quarter, or 9.2% of revenues. Or our earnings to date and our confidence in the quality of our backlog have allowed us to narrow the guidance range and increased the lower end of our earnings per share range guidance. As we indicated in our earnings release, our revised 2012 EPS guidance is $2.85, to $3.05.

Now, let me take you through the sector's 2012 results were consistent with our expected annual range of operating results which we have discussed previously. Specifically our performance expectations for operating income are in the range of 7% to 10% for Steel Plate Structures, 3% to 6% for Project Engineering and Constructions, and annual operating income for Lummus Technology, of $100 million, plus or minus 10%.

Phil, Lasse and Dan spoke to specific new awards and prospects activities so I'll cover some overall comments relating to new awards. As we previously indicated new awards for the second quarter, totaled just over $1.8 billion for book-to-burn of 141%. As pointed out earlier the second quarter awards resulted in backlog of over $10 billion, the highest in our company's history.

Press release awards and growth in our major projects totaled approximately $1.2 billion and the approximately $600 million aggregate balance of smaller new awards was spread nicely between our sectors and projects types and around the world. Our new awards of $3.5 billion, for the first six months and prospects for the balance of the year enable us to reaffirm our previous full year 2012 new award guidance of $5.5 billion to $7 billion.

Now let me turn to our sector performance. Steel Plate Structures reported second quarter 2012 revenue of $500 million, an increase of 9% from $456 million in 2011. The increase primarily reflected higher activity on our large LNG tank and mechanical erection projects in the Asia Pacific region.

Operating income totaled $48 million or 9.7% of revenues compared to $47 million or 10.4% of revenues in 2011. Our 2012 results benefitted from higher revenues volume and the related leverage of our – operating costs, offset somewhat by the impact of higher percentage of revenues being derived from our cost reimbursable mechanical erection project in the Asia Pacific region and other changes in the mix of our projects and processes.

Project Engineering and Constructions revenues totaled $711 million in the second quarter of 2012. And increase of $170 million or 31% from 2011. The most significant revenue increase related to the increased activities at our REFICAR refinery project which Lasse discussed earlier.

Increased revenues were also generated from our gas processing plants in the United States. Income from operations increased 33% to $33 million or 4.6% of revenues in the second quarter of 2012 compared to $24 million or 4.5% in 2011.

Factors contributing to the change in operating margins included better operating leverage from the higher volume, somewhat offset by an increase in the level of reimbursable projects, higher pre-contract costs, which were driven by an increase in bid activity around the world.

Finally, Lummus Technology has had a record new awards quarter of [$311 million] driven by the strength of the global petrochemical market which Dan spoke to earlier, that will certainly drive future earnings in the back half of 2012 and beyond.

Second quarter revenue of $89 million was comparable to the 2011 quarter and second year operating income totaled $22 million, up $16 million from the comparable quarter of 2011, reflecting a favorable margin mix on the quarter activities and improved equity income from our 50% interest in Chevron Lummus Global.

Our balance sheet liquidity remains strong with a cash balance of $553 million, no revolver borrowings and cash, net of debt of $513 million. During the quarter, we returned $23 million to our shareholders through $5 million of cash dividends and stock repurchases of $18 million.

For the first six months, our share repurchases and dividends totaled $133 million. Our CapEx in the second quarter was $23 million and $34 million for the first half. We expect full year CapEx to be approximately $65 million.

Our investment in contract capital reflected the combined balances of receivables, contracts and process and accounts payable stands at a negative $540 million at the end of the quarter compared to $672 million at the end of the first quarter. This changed primarily due to the timing of receivable collections. A significant portion of the second quarter change is expected to be recovered over the balance of the year.

In closing, our strong backlog and financial position provide us with the necessary financial flexibility to deliver our projects and take advantage of the energy market demand for our services. We are well positioned for opportunities to grow our Company and continue to provide strong returns to our shareholders. Phil?

Philip Asherman

Thank you, Ron. Now we'll open the call for your questions.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Andy Kaplowitz, Barclays Capital.

Philip Asherman

Good afternoon, Andy.

Andy Kaplowitz – Barclays Capital

Nice quarter.

Philip Asherman

Thank you.

Andy Kaplowitz – Barclays Capital

So Phil, if I didn't know any better, I mean the way it sounds like everything's going along very, very well. Are you guys seeing any sort of slowdown in anything? I mean, it sounds like no. Obviously what we read every day looking at the markets is different, but you guys seemed well positioned and everything is going along well. Is that true? Any customers saying that?

Philip Asherman

That's a pretty good read, Andy. We're very encouraged about what we see in front of us. Certainly the developments in Australia still keep -- are keeping pace with what we've reported previously, especially on big projects and we're quite hopeful we are – we’ll continue to win our share if that work.

The market in the U.S. around shale gas, petrochemicals, no surprise there, they are developing as planned, nothing difference to report on the export facilities on LNG export. We continue to work with three port developing fee and we are doing some preliminary work with (inaudible) as well and again, we think we are well-positioned for at least one or two or those in the next couple of years. So in my opening remarks, I said the best news was that it is as we planned and gave guidance for it and I think that's a -- in this business, that's a pretty good thing to say.

Andy Kaplowitz – Barclays Capital

Yeah, that is. So I'm going to get Dan in trouble for this, but obviously very large awards in the quarter in Lummus and so you've given the guidance that you've given for the last year, so around that 100 plus or minus 10%. I know we're starting sort of slowly but it seems to me like you're going to ramp up quickly here in Lummus Tech for the next couple of quarters. Is that fair? So maybe you could get to the high end of that range or even beyond?

Dan McCarthy

Yeah, Andy, I think that that's definitely the direction we're going with the paraxylene activity. It's a bit of a step change for us and so we have a hope that indeed – well I guess it's got to be more than hope right? We have expectations that indeed we are on an upward ramp now.

Andy Kaplowitz – Barclays Capital

Okay. And maybe I could throw in one more quick one. Did the scope adjustments, Phil, of $750 million I think you mentioned in Q2, those seem unusually high. Where are they coming from and do you expect more scope adjustments in the second half of the year?

Philip Asherman

They are unusually high for this quarter and not unusual for the amount of reimbursable – for the size of reimbursable projects and the size of projects. But certainly this quarter that kind of concentration is kind of unusual. We have certain restrictions on disclosures on scope changes in our contracts, but if you look at our major projects, I think you can pretty well see the projects will be effective primarily LNG related, but it was a high concentration of growth on projects.

But again they were – our forecast just has other new awards we anticipated in our forecast. We're certainly subject to the same kind of factoring, subject to owners' approval, so it wasn't a spike as we certainly anticipated that. So it was just a different kind of mix this quarter than previous quarters.

Andy Kaplowitz – Barclays Capital

Okay, that's helpful. Thanks guys.

Philip Asherman

Thanks Andy.

Operator

Your next question comes from the line of Jamie Cook, Credit Suisse.

Philip Asherman

Good afternoon, Jamie.

Jamie Cook – Credit Suisse

Hi, good morning and congratulations. One of the few good reports I've had so far earning season. Two -- couple -- two clarifications and then one question. One, as it relates to, I think you made comments with regards to Gorgon about some revenues being pushed to 2013 versus '14. Did I hear that correctly and can you quantify?

And then the second follow-up question relates to what Andy just asked. On the Lummus Technology in terms of, I just want to make sure I understand, we're at a new inflection point or whatever you said, is that in terms of -- do you expect orders to somewhat continue at this rate or do you -- or were you talking more about the burn rate associated with those orders?

And then my real question is just in terms of, you know, great quarter. The revenue was a little lighter relative to what we thought. So, I'm just trying to get a sense of where revenues trended relative to your expectations? I know you expected sequential improvement but the Street was higher, so if you could just talk through that and then I'll get back in queue?

Philip Asherman

So I'd give you the short answer because I'm going to let me colleagues here expand if needed, but on the Gorgon project I believe what Lasse said, that was expected, ramping up in 2013, 2014. So we're going to see the top of that curve through those two years, so it's '13 and '14, Jamie.

Jamie Cook – Credit Suisse

But no change in forecast, I'm just trying to understand whether you said it'd be delayed -- it's further out than you thought or is there nothing…?

Philip Asherman

No, it actually relates to your last question too and there is a sluggishness in some of the revenues and that was directly related to more delayed revenue on Gorgon in our steel plate structured business. But again it's just -- it's not -- it's still in front of us. So we had not quite the expectations, but that was attributable primarily to Gorgon.

Then Lummus Tech, I'll let you answer that.

Lasse Petterson

Well, I think that for us, Jamie, we have been looking at maybe like $125 million a quarter and I think now we are looking higher than that, maybe $150 million. So for the year, I think that you know we'll have significantly higher overall awards than we had in previous years. And of course, the margins associated with that should generate additional profit, and for us to be in the range at the end of the year of about $120 million could very well happen. That's what would be in my target.

Jamie Cook – Credit Suisse

Is there any reason the margins will be based on that –– significantly different than what we are seeing? I would think the trajectory, while I don't want to get ecstatic you know getting into 2013, but if the orders continue at that rate, the trajectory for 2013 in terms of what you see on your operating income, should be better than the $120 million that you are talking about?

Dan McCarthy

That's something to look at the next year of course, but you know it's a little early for us to have a perspective on that. But I think that in general, we have been fortunate to sort of growing bottom line at 10% and we hope to continue to do that year–on–year.

Philip Asherman

Yeah. Jamie I think also as the answers in mix, as Dan said in his remarks, previous quarter was a greater concentration of heaters, heat transfer equipment which carries a different kind of commercial structure to it and somewhat incrementally lower margins. So that has I think to –– that adds to a component of this. But I think that step change from $80 million to $100 million to $120 million is very significant on the net income line. So we hope that it's continued improvement. But I'd be careful using just a straight run–rate calculation going into next year. But certainly we expect Dan's group to grow at that kind of pace.

Jamie Cook – Credit Suisse

Then sorry just one and then I really will stop. Back on Gorgon, could you quantify the revenue deferral or you know what's getting plus to 2013, 2014 I just want to get sense of for how material that is?

Ron Ballschmiede

Is that much sure money. I think we were able to come in at a revenue target, the upper end of our revenue guidance because the small shortfall that we have had, as we have ramped that up has been offset by revenue coming out of the other projects. So it was not being (inaudible).

Philip Asherman

When we started the year, one of our base challenges and trying to anticipate to have an excellent impact on revenue forecasting. Quite honestly, as we have gotten through the year, that change if you will, the variance is probably within 5%. I think I will have go back and check that, but wasn't as significant as we had anticipated. So it's pretty much producing what we forecasted.

Jamie Cook – Credit Suisse

Okay. Thanks and congrats again.

Operator

Your next question comes from the line of Steven Fisher, UBS.

Philip Asherman

Hello Steven. Steven?

Steven Fisher – UBS

Sorry about that. Good afternoon. Not sure if I missed this, but did you comment on what your expectations are for the minority, the non–controlling interest? Is that still expected to be $25 million for the year?

Ron Ballschmiede

No I think with the pace that we are burning all those two large jobs, Papua New Guinea and Gorgon, and then of course our business in Saudi, we would expect that to be closer to $50 million for the full year.

Steven Fisher – UBS

Okay, because it seems like, is that part of the reason for the guidance change or is it I guess the net, you wouldn't get the benefit consolidated anyway?

Ron Ballschmiede

It actually helps a little bit because that revenue is being replaced with other revenue and of course that's revenue we don't share with anybody else. So as we hit our revenue number and it gets 100% on, versus partially minority, it does help the bottom line a little bit.

Steven Fisher – UBS

Then can you just comment on what you are seeing on the ability to find adequate labor in Australia and how that is expecting a ramp up of the Gorgon MEI? Then I guess just to clarify that again, the part of the Gorgon that's delayed, that is your tank work cannot just MEI?

Lasse Petterson

Yeah. No, what we are seeing is there is some transfer of revenues from this year to the later years on Gorgon, and that increase in labor that maybe comes as the compression of the schedule. We have not seen any difficulties in finding the labor in Australia. We have a large following there, as we have talked about it in earlier earnings calls. And the ramping up to this level of labor that we need to do on Gorgon is well within what we have in our forecast and I think we can do. And clearly, we'll max out on our Australian Liverpool and then if need be we can supplement through four, five, seven visas for additional resource.

Dan McCarthy

Yeah, I think it's important to clarify, Steve, that the delays if you will – we've been talked about in Gorgon are not result of labor shortages. It's – I characterize it as more of re–sequencing of the work but certainly, not because we can't mobilize labor.

You know when you look at the new job that we are just awarded in New South Wales as that's whole different labor market over there, it's a heavy industrial area, plenty of local labor, different unions and so forth. So and that's kind of how it is in Australia, it's not all concentrated in one area but certainly we've seen good results from recruiting in Australia and good productivity. So we're very encouraged.

Steven Fisher – UBS

Okay. Thanks very much.

Philip Asherman

Okay.

Operator

Your next question comes on the line of George O'Leary, Tudor, Pickering.

Philip Asherman

Hello, George.

George O'Leary – Tudor, Pickering

Yeah. Good evening, guys. How are you all?

Philip Asherman

Good.

George O'Leary – Tudor, Pickering

So just kind of talking about end markets you believe will most impact–fully drive new term growth opportunities for CBI some maybe ranking LNG verses petrochemical and then talking about the North American opportunity verses the rest of world. Just maybe a little bit more color on what you think drive this business in the near term?

Philip Asherman

Well if you look into next year in 2014 as Lasse said you'd have to put Australia LNG right at the top of that list. We're very encouraged again when you get back to US, on the markets developing both with shale gas and petrochemical projects to next two to five years. And certainly the export facilities I think close by that would be with the Freeport and others. So those would be the – the big opportunities. So we've also seen a wonderful diversely in our new awards for offshore pipeline, FPSOs, that are driven by engineering offices around the world. And that's really important part of our overall picture that contributes to the –– what we experienced this year of the $600 million are sold new awards throughout our offices and in technologies and small projects.

So that's been very important run–rate for us and it would contribute as we said previously. Around $2 billion and $2.5 billion of new business each year and very–very diverse book of work. So when we see activity in virtually all the sectors which we participate throughout most of geographic areas.

We have talked some more (inaudible) in Russia seems to be getting some various interesting traction on that project and we hope that we'll go to tender here, very soon at least of this year. So the end markets that we're positioned for I think are still very strong for us and we think going into 2013 and 2014 we'll be in pretty good shape.

George O'Leary – Tudor, Pickering

Yeah, that's very helpful and maybe just piggybacking on the back of that and given your comments around offshore and some pipeline FPSO type work, any thoughts around using your cash balance and solid liquidity position to – you know bolster your position in the upstream markets, maybe potentially even looking at during some M&A there?

Philip Asherman

We've certainly talked with number of analysts and others about this, they asked a lot of questions, it's a natural -- it's a natural position for us to take given the amount of headroom we have in there, I mean there's a lot of headroom in that. It’s very difficult M&A market for us except on very incremental basis, but we continue to grow our position in offshore FPSO, a lot of good engineering and procurement work. To get into the next level, it would take a whole different kind of investment that we’ll have to really think hard about it in our projects. Go ahead.

Lasse Petterson

And also one of the growth opportunities we have, coming out from the upstream and the offshore side is to find partners, to do EPC together with that vessels on our growth avenue for us in that area.

George O'Leary – Tudor, Pickering

Thanks, guys. That’s very helpful. That’s all I got.

Lasse Petterson

Thank you. Sure.

Operator

Your next question comes from the line of Michael Dudas, Sterne Agee.

Lasse Petterson

Hello, Michael.

Michael Dudas – Sterne Agee

Good evening, Phil and everybody. Lasse, to follow-up your last comment there on the upstream side, are you thinking about different partners, different areas of the world, different skill sets or maybe getting a venture with one particular company to levered both your skill sets.

Lasse Petterson

As we’ve done on the LNG side, we’ve partnered up with Saipem and with Chiyoda and we are executing projects jointly with them in various parts of the world. We like to work with the same partners, so we know them and we trust them and we know how they can perform.

And we will do the same when we leverage into other markets and we are currently exploring that on the FPSO side and also on fixed platforms where we are in good position on with doing engineering.

Michael Dudas – Sterne Agee

Appreciate that. For, Ron, as the business mix changes as you see growth in the topline, and potentially and hopefully on the backlog side in new business taking in the next couple of years. You feel comfortable you can still drive the leverage through the G&A business to maybe enforce that percentage revenue even below the 4% range, as we move for the next couple of years, is that model still there or is there more investment or required to get to that next level revenue?

Ron Ballschmiede

I think, as we look forward in our markets and have confidence there will be double-digit growth beyond 2012. We’ll continue to see some of that leverage that we saw this year to date and expect for the full year. Obviously, it’s incrementally more challenging to -- you can go 5.3 to 4.5 last year, it was 4.0 this year.

So it diminishes as far as significant, but we continue to believe that we have an S&A activity that will increase by inflation plus a little bit, certainly would be in the kind of the range that we saw in this quarter, mid -- percent mid single digit percentages. And so we will see some leverage coming out of that as long as we keep growing the topline by that double-digit number and that would be our expectation.

Michael Dudas – Sterne Agee

Appreciate that. And my final question for Dan, maybe you can talk a little more about the refining aspect in your technology side. Any indications on what customers are thinking about and maybe the coking side -- is there opportunity for coking potential, licensing for you and do you see an outlook of growth from cap investment or refining side given what you are talking about with your customers?

Dan McCarthy

I think the coking business continues to be an important activity throughout the world whether it be just putting in a coker itself or taking the bottoms of resi treater in coking that. People are always going to extract the maximum amount of liquid. These projects are quite interesting. And so, yes, we continue to see that business being vibrant for the next few years.

Another aspect of coking is that there is a lot of interest now on specialized coke, in particular needle coking and we are doing some work in that area to, this sort of product used in steel making and has a tremendous value. So it sort of puts a upside to coking because otherwise it’s a difficult product to get rid off.

And so we are enthusiastic about coking. Refining, we think that there is two or three issues that the U.S. has to address, not this year but out in the future. There is going to be continued growth in Asia-Pacific Rim and that will provide opportunities for us.

Michael Dudas – Sterne Agee

Excellent. Thanks for your thoughts, gentlemen.

Ron Ballschmiede

Thanks, Michael.

Operator

Your next question comes from the line of Brian Konigsberg, Vertical Research.

Ron Ballschmiede

Hello, Brian.

Brian Konigsberg – Vertical Research

Hi. Good afternoon. Hey, I just wanted to touch on U.S. gas processing. Couple of projects you are working on there, you had discussed the potential opportunity for some add-on work. I was curious where that resides right now and do you see that being a contributor, say, over the next couple quarters or a potential contributor?

Ron Ballschmiede

I think, as we said on the back of the shale gas developments in the U.S. It has given us opportunities, particularly for the Dominion gas plant. Hopefully, there will be more work coming out of that part of U.S. and generally on the gas processing side, we are well-positioned also with technology for smaller gas plants and I think, there will be some good opportunities in that sector.

Philip Asherman

You are probably referring to Brian, I think we’ve specifically talked about expansions at both those facilities…

Brian Konigsberg – Vertical Research

Yeah.

Philip Asherman

They are still in the playing phases. We don’t have any more information on that. But we still would anticipate that we will look forward at some point but it won’t be immediate.

Brian Konigsberg – Vertical Research

Okay. And just shortly, with natural gas prices creeping up, obviously we are still at very low levels, but I’m just curious, when your discussions with some of the project sponsors, at what levels do they start to reconsider the economics of some of these projects. I assume, we are still very far away, but I'm just curious if you have any kind of break-even levels or kind of where that resides around?

Philip Asherman

Well, I think, probably, if you asked three of us, moving forward we should, probably, might get four different answers as far as where does that impede more capital expenditures in Southern downstream plants and gas plants.

We haven’t seen that as of yet. I hate to give you a number, it would clearly be speculative on my part. But certainly, I think its well north of where we are. We were quite comfortable that there would be unusual increase that would stop or impede more CapEx in natural gas.

We just haven’t seen it. We have not seen the pace slowdown of anything. I think generally speaking, we think most of the developments have accelerated over the last year or two.

Brian Konigsberg – Vertical Research

Got it. Thank you very much.

Operator

Your next question comes from the line of Scott Levine, JP Morgan.

Philip Asherman

Hi, Scott.

Scott Levine – JP Morgan

Hi. Hey. How are you doing, Phil? Question, so your margins, so even margins have generally hung in the 7%, 8% range and gross in 12s. But could you give us some color, you guys have traditionally endorsed 10-ish to 12-ish gross margin range.

I’m wondering if they ever continue to think about that this year and maybe subjectively into next? And then also maybe some color regarding the margins and the work you are booking today versus what is running through your P&L? Are there any market differences between the two?

Philip Asherman

Well, I think Ron will probably tell you in a minute that that range that we’ve been operating in for all the business sectors is still what we see that very remainder of this year and going into next year.

We haven’t seen any fundamental shifts in the market that are affecting absolute margins at least in the regions in which we are participate. And I think we haven’t seen any incremental changes in those margins in the end markets that I’m talking about. So, I think it’s got -- the ranges what we’ve given you for each one of those sectors, still good range for operating. Ron, would you agree?

Ron Ballschmiede

Yeah. I think it’s very challenging to talk about our 10.5 to 12.5 range without getting back to understand the sectors, because as you saw this year and you have seen the last two years, many quarters in a row, now the sectors are operating right, where we think they should be or it have been. The midpoint for PEC, the upper end for SPS in this $100 million and growing from Lummus Technology. But that mix is really driving a change in our consolidated gross profits.

So we try and act to focus too much on that because you kind of miss the story, if you will and the result when we are growing that PEC business by 33% a year, we’re going to see some continued reduction in consolidate gross profit. But as you saw this quarter, most of our operating incomes, all of our operating income increased from the -- what I would call the project business came out of that revenue machine and that’s why that business model works and that’s why we like it.

So as we continue to hopefully exploit some of these large projects in LNG, we will see that PC revenue stream continue to grow pretty healthy and the phenomenon you saw continue. But Phil is right, what we are selling, what we are delivering, the mix of work, the type of contracting we are doing and the mix we have of cost-reimbursable versus lump sum, I wouldn’t respect any major changes in our sector ranges sort of performance that we have seen in the last many quarters.

Scott Levine – JP Morgan

Got it. One follow-up and maybe housekeeping, any impact from FX translation on your backlog or reporting metrics or is that de-minimus or I don’t know, if that was given or not?

Ron Ballschmiede

Its pretty de-minimus for the first six months that probably helped us, it bounced if you will, probably overall 3%, 4% improvement in the first quarter and we gave it back in the second vice versa. So right now, we are right where we started the beginning of the year.

Scott Levine – JP Morgan

Thanks. Nice quarter.

Ron Ballschmiede

Thank you.

Operator

Your next question comes from the line of Joe Ritchie, Goldman Sachs.

Philip Asherman

Hello, Joe.

Joe Ritchie – Goldman Sachs

Hi, guys. Great quarter. And thanks for taking my questions. First, question is really around your awards. It looks like first half of the year, you are on a run rate to hit the top end of your award guidance range. You hadn’t really booked to a lot of big award there with the exception of maybe curl.

And so is it fair to say that you can hit the top end of that guidance range just by continuing to crank out $200 million, $300 million projects and you don’t need any of these large mega projects that come through to get there?

Philip Asherman

Well, the forecast is a mix of somewhat very large projects and the range of projects that you are talked about, of course is a factoring of probability so we’ll resolve that as well. So our range is really predicated on that kind of factoring and mix. I think you’re right. I think probably, if there is a risk in our guidance, it’s all new awards and just timing of the awards.

I think we are pretty confident that Browse do as they say and go to EPC towards the end of year, but whether that’s translates in the beginning of the contract before at the end of year is fairly problematic and some of the others. But I think when as we look at the book of work in front of us for the reminder year, there is a number in that $250 million, $300 million range that will be very, very good projects for us and it would make up, I think the good portion of our guidance. So yeah, we have a good chance of getting to the top of rig but timing got to be our friend.

Joe Ritchie – Goldman Sachs

Okay. That’s helpful, Phil. And I guess switching the gears over to your margins and that the margins that you booked this quarter, which were strong across each one of your segment. Was there anything, Ron, one-time that helped those margins particularly in steel plate, for example, incentive fees on GASCO, is there anything that just was with off this quarter that helped you?

Philip Asherman

When the Yamal was up, they do just as we hope. Every quarter we have some that do better, every quarter we have some that leak a little better or need to be head free of retention but they are pretty much offset that they have been doing for quite sometime. So, no big plus, no big minus when aggregated with the 700 plus projects that’s going on at this point in time.

Joe Ritchie – Goldman Sachs

Okay. Fair enough. Just one last question for Dan. We’ve talked in the past about Lummus Technology being a good leading indicator for cross-selling into some of your other businesses particularly I guess your project engineering business. Can you talk a little bit about the opportunities maybe even in India to do some of the construction work on some on those projects that you are running?

Dan McCarthy

Well, I think that hold off in India and let’s talk into general for the time being.

Joe Ritchie – Goldman Sachs

Okay.

Dan McCarthy

And in general, I think we are having a very good success rate of working projects with its good opportunity to create value for the customer through a single execution model. And the project, I described and Russia is the same project, Lasse described is doing the feed work. And so that’s all very much coordinated between the two sectors. And the North American market is very much coordinated between the two sectors.

Then when we go out to places like India and other places, it becomes there is a lot of local engineering company -- there is a lot preference to use local engineering companies and sometimes the risk-reward profile is not that friendly. So, in the follow-up regions, I would say that it’s not only as possible to go together.

Philip Asherman

I think generally, I mean if you just look in this past year or two, of course, Williams….

Dan McCarthy

Right.

Philip Asherman

…is a good example of how we bundle all those services dominion molecules. There were components of that REFICAR, and just a number of projects. So, we’re definitely seeing the ability to either use technology as a leader. In some cases, the EPC work, where Dan can bring in technology to the mix.

And then of course, let’s not forget our tank business either that’s also wonderful add on. So, it’s really been beneficial. What we don’t do is we don’t -- it’s not prescribed. We don’t take projects only because we are doing technology and we don’t think EPC, if we just have the technology. So, it’s not prescribed. So, we look at each project and its own merits and hopefully in many cases the owners are seeing the advantages of bundling these services together.

Joe Ritchie – Goldman Sachs

Okay. Make sense. Thanks for taking my questions and nice quarter.

Philip Asherman

Thanks, Joe.

Operator

Your next question comes from the line Robert Norfleet, BB&T Capital Markets.

Philip Asherman

Hi, Robert

John Allison – BB&T Capital Markets

This is [John Allison] his new associate. Rob couldn’t be on the call today but I just -- lot of my questions have already been answered. But I want to get a little bit more color on what you guys are seeing in terms of acquisition opportunities. And also you guys have a large amount of cash on your books, now also I want to know, what your thoughts are on share repurchases going forward?

Philip Asherman

Well, we’ll -- I am sure Ron will add to this as well but again as we said previously every thing is on the table. We think our preferred use of our capital is to growing the company organically and certainly acquisitions have always been a part of our strategy going forward, if they make sense. The share repurchase certainly is an ongoing program we look at as long as it’s been opportunity for our shareholders. So we have got great returns on it. So, that’s certainly a still in the mix. So, Ron you want add anything to that?

Ron Ballschmiede

No. I think that’s good -- number one objective is to grow our business externally and internally. And each quarter we look at our opportunities and make sure that we are -- have the right capital structure in place to take advantage of that and to return the shareholder money to an extent we can.

Obviously, we did a lot -- we did a large repurchase in the first quarter that was by designed to be the largest, simply because if you’re going to do it, you might as well get it done early in the year or later in the year. So that’s why you saw us tail-off here in the second quarter.

John Allison – BB&T Capital Markets

Right. And one more question, it sounds like you guys have a pretty positive outlook -- pretty good positive outlook on awards going forward and the market overall but if you’re looking at overall equity markets, there is a lot of macro headwinds especially with slowdown in China and what’s going on in Europe. I guess, my question would be what’s your biggest concern right now in CB&I’s market?

Philip Asherman

Well, we are able to mitigate a lot of that headwind, [John], by really just the customers that we are working for. Our mix of customers are those large international and integrated oil companies who are scenario of playing 5 and 10 years out and are planning their CapEx accordingly. And those are -- make up our essentially our client list.

And I think as long as we stay faithful to that process, I think we would be able to mitigate a lot of the macro headwinds that you refer to. And we’ve been successful as well as having a good mix of business and a good diverse portfolio work I think has been the primary reason we’ve been successful in awards.

John Allison – BB&T Capital Markets

Okay. Well, thank you so much.

Philip Asherman

Thank you, John.

Operator

This will be the last question. Your final question comes from the line of Matt Tucker, KeyBanc Capital.

Matt Tucker – KeyBanc Capital

Hi. Good afternoon and nice quarter guys.

Philip Asherman

Thank you

Matt Tucker – KeyBanc Capital

Your first question, when you look at the revenue guidance, the midpoint suggest a pretty material ramp-up in the second half or sort of first half. I was curious to the project business continue to drive most of that or could you kind of give us sense on your by segments of the trajectory going forward?

Ron Ballschmiede

I think volatile mode continue to have revenue growth on a percentage basis. I think you’ll see that on coming through on Lummus Technology. Although when you cut through it, their income is more important than their revenue level just because of the way they -- their business is structured in various equity participations et cetera.

But I think what we saw in the second quarter, we expect to continue for the balance of the year. And you’re right, if you are at midpoint, you would look towards $3 billion of additional revenue in the back half that just so avenues be at 20% growth on the $2.5 billion we have so far and they are very close to 20% growth we had in the first quarter, 20% growth we had in the second quarter.

So I wouldn’t expect anything drastically different to get to our guidance, we need that 20% for center to rotate to continue and that will continue to be driven nicely by the PC side being closer to 20 and the steel plate structure side be very close to double-digits also.

Matt Tucker – KeyBanc Capital

Thanks Ron. And then you commented on the mix of smaller awards as well as obviously technology -- both very strong in the quarter. Do you see that level of kind of base load work and technology work as sustainable going forward? Was there a little bit of benefit from lumpiness in the second quarter?

Ron Ballschmiede

I think it’s interesting. We first start paying a lot of attention to that “small work” and every time I say that prior have a bunch of business developers sending me for, probably $40 million small but as we looking at that back in ’08, beginning of the financial crisis and really zeroing in at it and I must say, I don’t recall quarters. Since then that we haven’t been in that kind of 400 and low to $600 million, $700 million on the high every quarter and that work is important to us.

We focus a lot on those small projects. They are really -- it's really nice work when you go through the risk profile of those things. So I would look for that to continue and we wouldn’t call any of those quarters unusual at this point in time.

Matt Tucker – KeyBanc Capital

Thanks Ron. If I get one last question, as you look at your award guidance for the rest of the year, so you mentioned that you, I guess, taking out a probability weighted approach to some of the potential, very large projects out there. You mentioned that Yamal LNG is at least scheduled to be awarded EPC that is in the fourth quarter. Could you give us any more color on how you’re kind of factoring that into the award guidance because my sense is that it will happen in the fourth quarter, you could probably be well above the high end?

Lasse Petterson

Well, that could happen, Matt. Again the timing would have to be in our favor. I think the important thing about that is that it has been extremely positive, comments come out of Russian government regarding the project and the sponsorship of large portion of the capital expenditure there. So those projects that we’ve identified in that part of the world, certainly Yamal seems to be well ahead.

And we’ve got a great position there, we’re going to have to earn our way our obviously but the timing again, it’s most of those projects that we’re glad to see that the timing has been somewhat accelerated that what we had envisioned probably in November when we gave our guidance.

So yeah that would have anywhere of those large jobs would certainly have a tremendous upside to our new awards but I think staying in the course on the guidance right now and perhaps towards the upper end is probably a reasonable projection.

Dan McCarthy

And I think I’ll just remind you that a lot of these projects while they will announce EPC award that doesn’t necessarily mean that they have met all the criteria that we have to put some in our backlog. So obviously, we’ll have to have NFID decision or FID, and contract and hopefully soon by down payment to get us mobilized and get us going.

So never say never but all those things needs to happen before we put it in our backlog because we want to make sure we don’t take it out at some point.

Lasse Petterson

Yeah. That’s very important. We do tender conservative side about what we consider backlog and as Ron said all those conditions have to be met. So even though the closer we get to these large mega projects and the excitement and impressive these will get again, we’re going to make sure that all those things have been achieved before we actually put in the backlog. So we’ll communicate that.

Matt Tucker – KeyBanc Capital

I think that makes sense. Thanks for taking my questions.

Lasse Petterson

Thank you, Matt.

Philip Asherman

Thank you.

Operator

That was our final question for today. Like to thank everyone for your participation on today’s call, you may now disconnect.

Philip Asherman

Thank you.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Chicago Bridge & Iron's CEO Discusses Q2 2012 Results - Earnings Call Transcript
This Transcript
All Transcripts