Investing.com - Chicago Bridge & Iron Company NV;s (NYSE:CBI) shares plunged on Thursday, as investors digested the company's latest results as well as the CEO's discussions detailing the company's financial struggles.
After hours Wednesday the energy infrastructure services firm announced a massive second quarter loss and also slashed its outlook. While this started a downward spiral for the company's share value, further negativity came from the CEO's comments in its post earnings discussion.
On a conference call with the financial community, Chief Executive Patrick Mullen announced a cost cutting program and noted how close the company was to missing debt payments. Mullen said the company was forced to take “decisive action” to bolster its financial position and that it would haven't been in compliance with certain debt covenants at the end of June without amendments to its credit agreements. The cost cutting program is expected to generate $100 million in savings on an annualized basis.
Chicago Bridge and Iron's shares were down 32% in afternoon trade and set a new 52-week low during the session.