Engineering and construction services company Chicago Bridge & Iron Co. NV said Tuesday it will record a pretax charge in the second quarter due to expected cost overruns on two major liquefied natural gas projects in the United Kingdom.
Shares of CB&I plummeted $8.69, or 23.9 percent, to $27.70 in aftermarket electronic trading following the company's announcement. The stock closed the regular session Tuesday at $36.39.
The company said it would record a charge of $317 million, or $2.38 per share, for the three-month period ending June 30. It now expects to earn between 40 cents to 60 cents per share for the quarter.
Analysts surveyed by Thomson Financial, on average, anticipate earnings of 58 cents per share, on revenue of $1.51 billion
President and Chief Executive Philip K. Asherman said continued poor labor productivity and weather delays have hurt the schedule and caused substantial increase in costs above previous estimates.
The charges will cause the company to be out of compliance with its lender agreements, said CB&I. It will seek the necessary amendments to the agreements.
CB&I will report its second quarter earnings on July 30.
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