- Record quarterly Subsea Technologies revenue and operating profit of $1.4 billion and $209.5 million, respectively
- Record full year Subsea Technologies revenue and operating profit of $4.7 billion and $548.2 million, respectively
- Record full year Subsea Technologies orders of $6.5 billion
- Company provides 2014 diluted earnings per share guidance of $2.55 to $2.75
Total inbound orders were
Full Year 2013 Results
"We are pleased to report our twelfth consecutive year of earnings growth. Diluted earnings per share of
"In Surface Technologies our international surface wellhead business continues to deliver exceptional results. We have strengthened our position in strategic international markets and expect strong operational performance to continue into 2014."
Review of Operations - Fourth Quarter 2013
Subsea Technologies
Subsea Technologies fourth quarter revenue was
Subsea Technologies operating profit was up 44 percent from the prior-year quarter to
Subsea Technologies inbound orders for the fourth quarter were
Surface Technologies
Surface Technologies fourth quarter revenue was
Surface Technologies operating profit increased five percent from the prior-year quarter to
Surface Technologies inbound orders for the fourth quarter were
Energy Infrastructure
Energy Infrastructure fourth quarter revenue was
Energy Infrastructure inbound orders for the fourth quarter were
Corporate Items
Corporate expense in the fourth quarter was
The Company ended the quarter with net debt of
The Company repurchased approximately 884,000 shares of common stock in the quarter, at an average cost of
Depreciation and amortization for the fourth quarter was
The Company recorded an effective tax rate of 33.7 percent for the fourth quarter, which includes the impact of the Angolan tax adjustment and the Multi Phase Meters earn-out.
Summary and Outlook
Total inbound orders of
The Company's guidance range for 2014 diluted earnings per share is
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
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In millions except per share amounts, unaudited) |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
|
|
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
Revenue |
$ |
2,047.8 |
$ |
1,840.9 |
$ |
7,126.2 |
$ |
6,151.4 |
Costs and expenses |
1,773.8 |
1,651.3 |
6,378.6 |
5,546.6 |
||||
274.0 |
189.6 |
747.6 |
604.8 |
|||||
Other income (expense), net |
4.3 |
(1.4) |
5.3 |
23.0 |
||||
Income before net interest expense and income taxes |
278.3 |
188.2 |
752.9 |
627.8 |
||||
Net interest expense |
(8.6) |
(10.7) |
(33.7) |
(26.6) |
||||
Income before income taxes |
269.7 |
177.5 |
719.2 |
601.2 |
||||
Provision for income taxes |
90.6 |
56.1 |
212.6 |
166.4 |
||||
Net income |
179.1 |
121.4 |
506.6 |
434.8 |
||||
Net income attributable to noncontrolling interests |
(1.3) |
(1.0) |
(5.2) |
(4.8) |
||||
Net income attributable to |
$ |
177.8 |
$ |
120.4 |
$ |
501.4 |
$ |
430.0 |
Earnings per share attributable to |
||||||||
Basic |
$ |
0.75 |
$ |
0.50 |
$ |
2.10 |
$ |
1.79 |
Diluted |
$ |
0.74 |
$ |
0.50 |
$ |
2.10 |
$ |
1.78 |
Weighted average shares outstanding: |
||||||||
Basic |
238.1 |
238.8 |
238.3 |
239.7 |
||||
Diluted |
238.9 |
240.1 |
239.1 |
240.9 |
|
|||||||||
BUSINESS SEGMENT DATA |
|||||||||
(Unaudited and in millions) |
|||||||||
Three Months Ended |
Twelve Months Ended |
||||||||
|
|
||||||||
2013 |
2012 |
2013 |
2012 |
||||||
Revenue |
|||||||||
Subsea Technologies |
$ |
1,390.0 |
$ |
1,234.5 |
$ |
4,726.9 |
$ |
4,006.8 |
|
Surface Technologies |
489.0 |
443.7 |
1,806.8 |
1,598.1 |
|||||
Energy Infrastructure |
172.6 |
167.6 |
617.2 |
574.1 |
|||||
Other revenue (1) and intercompany eliminations |
(3.8) |
(4.9) |
(24.7) |
(27.6) |
|||||
$ |
2,047.8 |
$ |
1,840.9 |
$ |
7,126.2 |
$ |
6,151.4 |
||
Income before income taxes |
|||||||||
Segment operating profit |
|||||||||
Subsea Technologies |
$ |
209.5 |
$ |
145.8 |
$ |
548.2 |
$ |
432.2 |
|
Surface Technologies |
68.1 |
64.6 |
257.2 |
284.3 |
|||||
Energy Infrastructure |
22.6 |
28.2 |
74.3 |
68.2 |
|||||
Intercompany eliminations |
(0.1) |
- |
(0.1) |
- |
|||||
Total segment operating profit |
300.1 |
238.6 |
879.6 |
784.7 |
|||||
Corporate items |
|||||||||
Corporate expense |
(13.1) |
(11.4) |
(46.3) |
(41.8) |
|||||
Other revenue and other expense, net (1) |
(10.0) |
(40.0) |
(85.6) |
(119.9) |
|||||
Net interest expense |
(8.6) |
(10.7) |
(33.7) |
(26.6) |
|||||
Total corporate items |
(31.7) |
(62.1) |
(165.6) |
(188.3) |
|||||
Income before income taxes attributable |
|||||||||
to |
$ |
268.4 |
$ |
176.5 |
$ |
714.0 |
$ |
596.4 |
(1) |
Other revenue comprises certain unrealized gains and losses on derivative instruments related to unexecuted sales contracts. 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. |
|
||||||||
BUSINESS SEGMENT DATA |
||||||||
(Unaudited and in millions) |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
|
|
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
Inbound Orders |
||||||||
Subsea Technologies |
$ |
1,025.2 |
$ |
1,376.0 |
$ |
6,510.3 |
$ |
4,567.2 |
Surface Technologies |
622.2 |
388.8 |
2,049.1 |
1,519.5 |
||||
Energy Infrastructure |
160.8 |
151.5 |
605.7 |
648.1 |
||||
Intercompany eliminations and other |
(14.8) |
(6.6) |
(44.4) |
(12.9) |
||||
Total inbound orders |
$ |
1,793.4 |
$ |
1,909.7 |
$ |
9,120.7 |
$ |
6,721.9 |
|
||||||||
2013 |
2012 |
|||||||
Order Backlog |
||||||||
Subsea Technologies |
$ |
5,988.8 |
$ |
4,580.3 |
||||
Surface Technologies |
742.4 |
500.8 |
||||||
Energy Infrastructure |
288.4 |
297.7 |
||||||
Intercompany eliminations |
(21.4) |
(1.0) |
||||||
Total order backlog |
$ |
6,998.2 |
$ |
5,377.8 |
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(In millions) |
||||
|
|
|||
2013 |
2012 |
|||
(Unaudited) |
||||
Cash and cash equivalents |
$ |
399.1 |
$ |
342.1 |
Trade receivables, net |
2,067.2 |
1,765.5 |
||
Inventories, net |
980.4 |
965.1 |
||
Other current assets |
576.3 |
415.6 |
||
Total current assets |
4,023.0 |
3,488.3 |
||
Property, plant and equipment, net |
1,349.1 |
1,243.5 |
||
Goodwill |
580.7 |
597.7 |
||
Intangible assets, net |
315.3 |
347.4 |
||
Investments |
44.3 |
37.4 |
||
Other assets |
293.2 |
188.6 |
||
Total assets |
$ |
6,605.6 |
$ |
5,902.9 |
Short-term debt and current portion of long-term debt |
$ |
42.5 |
$ |
60.4 |
Accounts payable, trade |
750.7 |
664.2 |
||
Advance payments and progress billings |
803.2 |
501.6 |
||
Other current liabilities |
1,018.3 |
744.2 |
||
Total current liabilities |
2,614.7 |
1,970.4 |
||
Long-term debt, less current portion |
1,329.8 |
1,580.4 |
||
Other liabilities |
324.8 |
498.9 |
||
|
2,317.2 |
1,836.9 |
||
Noncontrolling interest |
19.1 |
16.3 |
||
Total liabilities and equity |
$ |
6,605.6 |
$ |
5,902.9 |
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
(Unaudited and in millions) |
||||
Twelve Months Ended |
||||
|
||||
2013 |
2012 |
|||
Cash provided (required) by operating activities: |
||||
Net income |
$ |
506.6 |
$ |
434.8 |
Depreciation and amortization |
209.8 |
146.2 |
||
Trade accounts receivable, net |
(391.0) |
(337.3) |
||
Inventories, net |
(28.9) |
(206.6) |
||
Accounts payable, trade |
103.8 |
83.0 |
||
Advance payments and progress billings |
329.0 |
25.9 |
||
Other |
66.1 |
(7.6) |
||
Net cash provided by operating activities |
795.4 |
138.4 |
||
Cash provided (required) by investing activities: |
||||
Capital expenditures |
(314.1) |
(405.6) |
||
Acquisitions, net of cash acquired |
- |
(615.5) |
||
Other investing |
2.5 |
1.2 |
||
Net cash required by investing activities |
(311.6) |
(1,019.9) |
||
Cash provided (required) by financing activities: |
||||
Net increase (decrease) in debt |
(269.7) |
983.2 |
||
Purchase of stock held in treasury |
(116.3) |
(91.1) |
||
Other financing |
(36.3) |
(10.7) |
||
Net cash provided (required) by financing activities |
(422.3) |
881.4 |
||
Effect of changes in foreign exchange rates on cash and cash equivalents |
(4.5) |
(1.8) |
||
Increase (decrease) in cash and cash equivalents |
57.0 |
(1.9) |
||
Cash and cash equivalents, beginning of period |
342.1 |
344.0 |
||
Cash and cash equivalents, end of period |
$ |
399.1 |
$ |
342.1 |
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SOURCE
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