HOUSTON, April 21, 2015 /PRNewswire/ -- FMC
Technologies, Inc. (NYSE:FTI) today reported first quarter 2015
revenue of $1.7 billion, down 7
percent from the prior-year quarter as stronger Subsea Technologies
performance was offset by the continued strength of the U.S. dollar
and the decline in the North American land market. Diluted
earnings per share were $0.63.
Total inbound orders were $969.0
million and included $552.0
million in Subsea Technologies orders. Backlog for the
Company was $5.5 billion, including
Subsea Technologies backlog of $4.8
billion.
"We delivered solid first quarter earnings, largely the result
of the continued strength of our Subsea Technologies performance,"
said John Gremp, Chairman,
President, and CEO of FMC Technologies. "We are leveraging
our backlog and execution momentum, while taking actions in all of
our businesses to strengthen our operating structure. With
our strong customer relationships, we expect to inbound at least
$3 billion of subsea awards in
2015."
Review of Operations – First Quarter 2015
Subsea Technologies
Subsea Technologies first quarter revenue was $1.2 billion, down 4 percent from the prior-year
quarter due to the strength of the U.S. dollar.
Subsea Technologies operating profit increased 19 percent from
the prior-year quarter to $168.7
million, primarily due to improved execution and stronger
project margins related to backlog conversion.
Subsea Technologies inbound orders for the first quarter were
$552.0 million and backlog was
$4.8 billion.
Surface Technologies
Surface Technologies first quarter revenue was $446.3 million, down 7 percent from the
prior-year quarter as increased activity in our non-North American
surface wellhead business was more than offset by decreases in the
North American market.
Surface Technologies operating profit decreased 28 percent from
the prior-year quarter to $62.9
million driven by the North American activity declines.
Surface Technologies inbound orders for the first quarter were
$326.3 million and backlog was
$519.5 million.
Energy Infrastructure
Energy Infrastructure first quarter revenue was $100.9 million, down 31 percent from the
prior-year quarter due to the absence of the Material Handling
Products business which was sold in the second quarter of 2014 and
reduced sales in all businesses within the segment.
Energy Infrastructure operating profit decreased 81 percent from
the prior-year quarter to $2.9
million, primarily as a result of both reduced and delayed
revenue.
Energy Infrastructure inbound orders for the first quarter were
$95.8 million and backlog was
$173.1 million.
Corporate Items
Corporate expense in the first quarter was $16.3 million, an increase of $1.4 million from the prior-year quarter.
Other revenue and other expense, net, increased $6.7 million from the prior-year quarter to
$26.4 million, due largely to foreign
currency losses related to the strength of the U.S.
dollar.
The Company ended the quarter with net debt of $621.3 million. Net interest expense was
$7.3 million in the quarter.
The Company repurchased approximately 776,000 shares of common
stock at an average cost of $39.75
per share in the quarter.
Depreciation and amortization for the first quarter was
$57.8 million, down $1.3 million from the sequential quarter.
Capital expenditures for the first quarter were $86.7 million.
The Company recorded an effective tax rate of 20.0 percent for
the first quarter largely due to less income subject to U.S.
taxation rules.
Summary and Outlook
FMC Technologies reported first quarter diluted earnings per
share of $0.63.
Total inbound orders of $969.0
million in the first quarter included $552.0 million in Subsea Technologies orders.
The Company's backlog stands at $5.5
billion, including Subsea Technologies backlog of
$4.8 billion.
The Company expects to inbound at least $3 billion of Subsea Technologies awards in
2015.
FMC Technologies, Inc. (NYSE: FTI) is the global market leader
in subsea systems and a leading provider of technologies and
services to the oil and gas industry. We help our customers
overcome their most difficult challenges, such as improving shale
and subsea infrastructures and operations to reduce cost, maintain
uptime, and maximize oil and gas recovery. Named by Forbes®
Magazine as one of the World's Most Innovative Companies in 2013,
the company has approximately 20,000 employees and operates 24
production facilities in 14 countries. Visit
www.fmctechnologies.com or follow us on Twitter @FMC_Tech for more
information.
This release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. The
words such as "expected," "continue," "outlook," and similar
expressions are intended to identify forward-looking statements,
which are generally not historical in nature. Such
forward-looking statements involve significant risks, uncertainties
and assumptions that could cause actual results to differ
materially from our historical experience and our present
expectations or projections. FMC Technologies cautions you not
to place undue reliance on any forward-looking statements, which
speak only as of the date hereof. Known material factors that
could cause actual results to differ materially from those
contemplated in the forward-looking statements include those set
forth in the Company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, as well as
the following: demand for our systems and services, which is
affected by changes in the price of, and demand for, crude oil and
natural gas in domestic and international markets; potential
liabilities arising out of the installation or use of our systems;
U.S. and international laws and regulations, including
environmental regulations, that may increase our costs, limit the
demand for our products and services or restrict our operations;
disruptions in the political, regulatory, economic and social
conditions of the foreign countries in which we conduct business;
fluctuations in currency markets worldwide; cost overruns that may
affect profit realized on our fixed price contracts; disruptions in
the timely delivery of our backlog and its effect on our future
sales, profitability, and our relationships with our customers; the
cumulative loss of major contracts or alliances; deterioration in
the future expected profitability or cash flows and its effect on
our goodwill; rising costs and availability of raw materials; our
dependence on the continuing services of key managers and employees
and our ability to attract, retain and motivate additional
highly-skilled employees for the operation and expansion of our
business; a failure of our information technology infrastructure or
any significant breach of security; our ability to develop and
implement new technologies and services, as well as our ability to
protect and maintain critical intellectual property assets; the
outcome of uninsured claims and litigation against us; and a
downgrade in the ratings of our debt could restrict our ability to
access the debt capital markets. FMC Technologies undertakes no
obligation to publicly update or revise any of its forward-looking
statements after the date they are made, whether as a result of new
information, future events or otherwise, except to the extent
required by law.
FMC Technologies, Inc. will conduct its second quarter 2015
conference call at 9:00 a.m. ET on
Wednesday, July 22, 2015. The
event will be available at www.fmctechnologies.com.
An archived audio replay will be available after the event at
the same website address. In the event of a disruption of
service or technical difficulty during the call, information will
be posted at
www.fmctechnologies.com/earnings.
FMC TECHNOLOGIES,
INC. AND CONSOLIDATED SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Revenue
|
$
|
1,695.2
|
$
|
1,824.4
|
Costs and
expenses
|
|
1,496.6
|
|
1,611.6
|
|
|
198.6
|
|
212.8
|
|
|
|
|
|
Other expense,
net
|
|
(6.3)
|
|
(1.1)
|
|
|
|
|
|
Income before net
interest expense and income taxes
|
|
192.3
|
|
211.7
|
Net interest
expense
|
|
(7.3)
|
|
(8.2)
|
|
|
|
|
|
Income before income
taxes
|
|
185.0
|
|
203.5
|
Provision for income
taxes
|
|
36.9
|
|
67.0
|
|
|
|
|
|
Net income
|
|
148.1
|
|
136.5
|
Net income
attributable to noncontrolling interests
|
|
(0.5)
|
|
(1.3)
|
|
|
|
|
|
Net income
attributable to FMC Technologies, Inc.
|
$
|
147.6
|
$
|
135.2
|
|
|
|
|
|
Earnings per share
attributable to FMC Technologies, Inc.:
|
|
|
|
|
Basic
|
$
|
0.63
|
$
|
0.57
|
Diluted
|
$
|
0.63
|
$
|
0.57
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
|
233.0
|
|
237.4
|
Diluted
|
|
233.9
|
|
237.8
|
FMC TECHNOLOGIES,
INC. AND CONSOLIDATED SUBSIDIARIES
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
|
|
|
|
|
Subsea
Technologies
|
$
|
1,157.2
|
$
|
1,202.0
|
Surface
Technologies
|
|
446.3
|
|
479.5
|
Energy
Infrastructure
|
|
100.9
|
|
145.6
|
Other revenue (1) and
intercompany eliminations
|
|
(9.2)
|
|
(2.7)
|
|
$
|
1,695.2
|
$
|
1,824.4
|
|
|
|
|
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
|
Segment operating
profit
|
|
|
|
|
Subsea
Technologies
|
$
|
168.7
|
$
|
141.7
|
Surface
Technologies
|
|
62.9
|
|
87.7
|
Energy
Infrastructure
|
|
2.9
|
|
15.6
|
Total segment
operating profit
|
|
234.5
|
|
245.0
|
|
|
|
|
|
Corporate
items
|
|
|
|
|
Corporate expense
(2)
|
|
(16.3)
|
|
(14.9)
|
Other
revenue (1) and other expense, net (3)
|
|
(26.4)
|
|
(19.7)
|
Net interest
expense
|
|
(7.3)
|
|
(8.2)
|
Total corporate
items
|
|
(50.0)
|
|
(42.8)
|
|
|
|
|
|
Income before income
taxes attributable
|
|
|
|
|
to
FMC Technologies, Inc. (4)
|
$
|
184.5
|
$
|
202.2
|
|
|
|
|
|
|
|
|
|
|
(1) Other revenue
comprises certain unrealized gains and losses on derivative
instruments related to unexecuted sales contracts.
(2) Corporate expense primarily includes corporate staff
expenses.
(3) Other expense, net, generally includes stock-based
compensation, other employee benefits, LIFO adjustments, certain
foreign exchange gains and losses, and the impact of unusual or
strategic transactions not representative of segment
operations.
(4) Excludes amounts attributable to noncontrolling
interests.
|
FMC TECHNOLOGIES,
INC. AND CONSOLIDATED SUBSIDIARIES
|
BUSINESS SEGMENT
DATA
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2015
|
|
2014
|
Inbound
Orders
|
|
|
|
|
|
|
|
|
|
Subsea
Technologies
|
$
|
552.0
|
$
|
1,918.8
|
Surface
Technologies
|
|
326.3
|
|
527.3
|
Energy
Infrastructure
|
|
95.8
|
|
141.3
|
Intercompany
eliminations and other
|
|
(5.1)
|
|
-
|
Total inbound
orders
|
$
|
969.0
|
$
|
2,587.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
2015
|
|
2014
|
Order
Backlog
|
|
|
|
|
|
|
|
|
|
Subsea
Technologies
|
$
|
4,825.0
|
$
|
6,786.6
|
Surface
Technologies
|
|
519.5
|
|
789.5
|
Energy
Infrastructure
|
|
173.1
|
|
285.0
|
Intercompany
eliminations
|
|
(10.6)
|
|
(18.9)
|
Total order
backlog
|
$
|
5,507.0
|
$
|
7,842.2
|
FMC TECHNOLOGIES,
INC. AND CONSOLIDATED SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
695.1
|
$
|
638.8
|
Trade receivables,
net
|
|
1,751.7
|
|
2,127.0
|
Inventories,
net
|
|
1,013.1
|
|
1,021.2
|
Other current
assets
|
|
782.6
|
|
649.4
|
Total current
assets
|
|
4,242.5
|
|
4,436.4
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
1,427.5
|
|
1,458.4
|
Goodwill
|
|
536.1
|
|
552.1
|
Intangible assets,
net
|
|
272.3
|
|
282.9
|
Other
assets
|
|
492.8
|
|
445.8
|
Total
assets
|
$
|
6,971.2
|
$
|
7,175.6
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
14.8
|
$
|
11.7
|
Accounts payable,
trade
|
|
612.9
|
|
723.5
|
Advance payments and
progress billings
|
|
793.3
|
|
965.2
|
Other current
liabilities
|
|
1,083.7
|
|
1,083.2
|
Total current
liabilities
|
|
2,504.7
|
|
2,783.6
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
1,301.6
|
|
1,297.2
|
Other
liabilities
|
|
682.9
|
|
617.1
|
FMC Technologies,
Inc. stockholders' equity
|
|
2,460.2
|
|
2,456.3
|
Noncontrolling
interest
|
|
21.8
|
|
21.4
|
Total liabilities and
equity
|
$
|
6,971.2
|
$
|
7,175.6
|
FMC TECHNOLOGIES,
INC. AND CONSOLIDATED SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited and in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2015
|
|
2014
|
Cash provided
(required) by operating activities:
|
|
|
|
|
Net income
|
$
|
148.1
|
$
|
136.5
|
Depreciation and
amortization
|
|
57.8
|
|
54.1
|
Trade accounts receivable,
net
|
|
254.8
|
|
(170.2)
|
Inventories, net
|
|
(23.3)
|
|
(14.7)
|
Accounts payable,
trade
|
|
(78.5)
|
|
(51.0)
|
Advance payments and
progress billings
|
|
(138.9)
|
|
124.0
|
Other
|
|
(44.4)
|
|
(26.9)
|
Net cash provided by
operating activities
|
|
175.6
|
|
51.8
|
|
|
|
|
|
Cash provided
(required) by investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(86.7)
|
|
(92.0)
|
Other investing
|
|
5.3
|
|
2.0
|
Net cash required by
investing activities
|
|
(81.4)
|
|
(90.0)
|
|
|
|
|
|
Cash provided
(required) by financing activities:
|
|
|
|
|
Net increase (decrease) in
debt
|
|
8.4
|
|
(13.2)
|
Purchase of stock held in
treasury
|
|
(30.8)
|
|
(45.8)
|
Other financing
|
|
(8.5)
|
|
(11.0)
|
Net cash required by
financing activities
|
|
(30.9)
|
|
(70.0)
|
|
|
|
|
|
Effect of changes in
foreign exchange rates on cash and cash equivalents
|
|
(7.0)
|
|
(0.6)
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
56.3
|
|
(108.8)
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
638.8
|
|
399.1
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
695.1
|
$
|
290.3
|
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SOURCE FMC Technologies, Inc.