CB&I initiates cost reduction plan, suspends dividend
The company announced that it is initiating a comprehensive corporate and operating expense reduction program expected to generate cost savings of approximately $100M on an annualized basis. CB&I's Supervisory Board has elected to suspend the company's quarterly common stock dividend effective immediately. The suspension of the dividend is expected to result in annual cash savings of $28M-$30M. The company reported a use of cash from operations in the second quarter of 2017 of approximately $157M, driven primarily by the net loss partially offset by an increase in our contract capital liability position. Using the cash proceeds from the June 30, 2017, sale of Capital Services, the company reduced its total debt to $1.8B at the end of the second quarter of 2017, as compared to $2.4B at the end of the first quarter of 2017.