- Quarterly Subsea Technologies inbound orders of $1.0 billion
- Quarterly Subsea Technologies operating margins of 16.9 percent, excluding restructuring charges
- High pressure/high temperature joint industry program expands to five deepwater operators
- Company receives agreement to provide subsea multiphase pump
- Forsys Subsea receives two integrated front-end engineering studies
Total inbound orders were
According to
He added, "Our Subsea Technologies segment delivered strong operating performance in the third quarter and we received two major awards resulting in another quarter of more than
"We achieved several critical milestones this quarter, not only for our company, but for the industry. We reached an agreement with Shell to provide our first subsea multiphase pump. We added Chevron as the fifth operator in our joint industry program for standardizing high pressure/high temperature subsea systems. And, Forsys Subsea, our joint venture with Technip, received two integrated front-end engineering studies. These are tangible examples of how the industry is adopting standardization, innovative technology, and new business models to improve deepwater project economics," said Gremp.
Review of Operations - Third Quarter 2015
Surface Technologies
Surface Technologies third quarter revenue was
Surface Technologies reported an operating loss of
Surface Technologies operating profit decreased 66 percent from the prior-year quarter to
Surface Technologies operating margins were 10.3 percent, excluding the impairment and business restructuring charges.
Surface Technologies inbound orders for the third quarter were
Energy Infrastructure
Energy Infrastructure third quarter revenue was
Energy Infrastructure reported operating loss of
Energy Infrastructure inbound orders for the third quarter were
Corporate Items
Corporate expense in the third quarter was
The Company ended the quarter with net debt of
The Company repurchased approximately 1.7 million shares of common stock at an average cost of
Depreciation and amortization for the third quarter was
The Company recorded an effective tax rate of 19.2 percent for the third quarter.
Summary and Outlook
The Company recorded
Total inbound orders of
The Company's backlog stands at
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 |
Nine Months Ended |
|||||||
|
|
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Revenue |
$ |
1,545.0 |
$ |
1,976.7 |
$ |
4,935.4 |
$ |
5,786.4 |
Costs and expenses |
1,422.2 |
1,680.3 |
4,426.0 |
5,017.5 |
||||
122.8 |
296.4 |
509.4 |
768.9 |
|||||
Gain on sale of Material Handling Products |
- |
(1.3) |
- |
84.3 |
||||
Other expense, net |
(12.7) |
(26.5) |
(34.1) |
(29.2) |
||||
Income before net interest expense and income taxes |
110.1 |
268.6 |
475.3 |
824.0 |
||||
Net interest expense |
(8.1) |
(8.0) |
(24.4) |
(24.5) |
||||
Income before income taxes |
102.0 |
260.6 |
450.9 |
799.5 |
||||
Provision for income taxes |
19.5 |
90.1 |
112.3 |
264.8 |
||||
Net income |
82.5 |
170.5 |
338.6 |
534.7 |
||||
Net income attributable to noncontrolling interests |
(0.5) |
(0.7) |
(1.1) |
(3.4) |
||||
Net income attributable to |
$ |
82.0 |
$ |
169.8 |
$ |
337.5 |
$ |
531.3 |
Earnings per share attributable to |
||||||||
Basic |
$ |
0.36 |
$ |
0.72 |
$ |
1.46 |
$ |
2.24 |
Diluted |
$ |
0.35 |
$ |
0.72 |
$ |
1.45 |
$ |
2.24 |
Weighted average shares outstanding: |
||||||||
Basic |
230.2 |
236.4 |
231.6 |
236.8 |
||||
Diluted |
231.0 |
237.0 |
232.5 |
237.3 |
|
|||||||||
BUSINESS SEGMENT DATA |
|||||||||
(Unaudited and in millions) |
|||||||||
Three Months Ended |
Nine Months Ended |
||||||||
|
|
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
Revenue |
|||||||||
|
$ |
1,093.7 |
$ |
1,300.4 |
$ |
3,490.3 |
$ |
3,831.0 |
|
Surface Technologies |
361.0 |
556.0 |
1,170.6 |
1,546.4 |
|||||
Energy Infrastructure |
97.1 |
124.9 |
299.4 |
419.6 |
|||||
Other revenue (1) and intercompany eliminations |
(6.8) |
(4.6) |
(24.9) |
(10.6) |
|||||
$ |
1,545.0 |
$ |
1,976.7 |
$ |
4,935.4 |
$ |
5,786.4 |
||
Income before income taxes |
|||||||||
Segment operating profit |
|||||||||
|
$ |
170.7 |
$ |
204.4 |
$ |
522.9 |
$ |
539.8 |
|
Surface Technologies |
(22.5) |
109.5 |
67.9 |
276.6 |
|||||
Energy Infrastructure |
(2.0) |
5.1 |
6.2 |
38.8 |
|||||
Intercompany eliminations |
- |
0.1 |
- |
- |
|||||
Total segment operating profit |
146.2 |
319.1 |
597.0 |
855.2 |
|||||
Corporate items |
|||||||||
Corporate expense (2) |
(14.7) |
(16.1) |
(45.0) |
(47.8) |
|||||
Other revenue (1) and other expense, net (3) |
(21.9) |
(35.1) |
(77.8) |
13.2 |
|||||
Net interest expense |
(8.1) |
(8.0) |
(24.4) |
(24.5) |
|||||
Total corporate items |
(44.7) |
(59.2) |
(147.2) |
(59.1) |
|||||
Income before income taxes attributable to |
|||||||||
$ |
101.5 |
$ |
259.9 |
$ |
449.8 |
$ |
796.1 |
(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. |
|
||||||||
BUSINESS SEGMENT DATA |
||||||||
(Unaudited and in millions) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
|
|
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Inbound Orders |
||||||||
|
$ |
1,049.0 |
$ |
1,072.4 |
$ |
2,612.7 |
$ |
3,841.3 |
Surface Technologies |
398.1 |
543.5 |
1,030.6 |
1,572.4 |
||||
Energy Infrastructure |
81.8 |
134.2 |
290.3 |
383.5 |
||||
Intercompany eliminations and other |
(2.9) |
(2.7) |
(13.0) |
(9.7) |
||||
Total inbound orders |
$ |
1,526.0 |
$ |
1,747.4 |
$ |
3,920.6 |
$ |
5,787.5 |
|
||||||||
2015 |
2014 |
|||||||
Order Backlog |
||||||||
|
$ |
4,287.6 |
$ |
5,855.2 |
||||
Surface Technologies |
495.0 |
750.6 |
||||||
Energy Infrastructure |
172.8 |
241.5 |
||||||
Intercompany eliminations |
(2.8) |
(20.0) |
||||||
Total order backlog |
$ |
4,952.6 |
$ |
6,827.3 |
|
||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES |
||||
(In millions except per share amounts, unaudited) |
||||
Three Month Ended |
||||
|
||||
2015 |
2014 |
|||
(after-tax) |
||||
Net Income attributable to |
$ 140 |
$ 187 |
||
Impairment charges |
(45) |
- |
||
Restructuring charges |
(13) |
- |
||
Intercompany foreign currency charge |
- |
(17) |
||
Net Income attributable to |
$ 82 |
$ 170 |
||
Diluted EPS, excluding charges |
|
|
||
Diluted EPS, as reported |
|
|
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(In millions) |
||||
|
|
|||
2015 |
2014 |
|||
(Unaudited) |
||||
Cash and cash equivalents |
$ |
711.5 |
$ |
638.8 |
Trade receivables, net |
1,738.6 |
2,127.0 |
||
Inventories, net |
874.5 |
1,021.2 |
||
Other current assets |
871.0 |
649.4 |
||
Total current assets |
4,195.6 |
4,436.4 |
||
Property, plant and equipment, net |
1,396.3 |
1,458.4 |
||
Goodwill |
519.4 |
552.1 |
||
Intangible assets, net |
253.8 |
314.5 |
||
Other assets |
346.1 |
410.7 |
||
Total assets |
$ |
6,711.2 |
$ |
7,172.1 |
Short-term debt and current portion of long-term debt |
$ |
33.5 |
$ |
11.7 |
Accounts payable, trade |
537.4 |
723.5 |
||
Advance payments and progress billings |
656.3 |
965.2 |
||
Other current liabilities |
1,144.2 |
1,083.2 |
||
Total current liabilities |
2,371.4 |
2,783.6 |
||
Long-term debt, less current portion |
1,261.2 |
1,293.7 |
||
Other liabilities |
554.6 |
617.1 |
||
|
2,505.5 |
2,456.3 |
||
Noncontrolling interest |
18.5 |
21.4 |
||
Total liabilities and equity |
$ |
6,711.2 |
$ |
7,172.1 |
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
(Unaudited and in millions) |
||||
Nine Months Ended |
||||
|
||||
2015 |
2014 |
|||
Cash provided (required) by operating activities: |
||||
Net income |
$ |
338.6 |
$ |
534.7 |
Depreciation and amortization |
182.5 |
173.4 |
||
Gain on sale of Material Handling Products |
- |
(84.3) |
||
Trade accounts receivable, net |
181.3 |
(276.2) |
||
Inventories, net |
105.2 |
(105.4) |
||
Accounts payable, trade |
(140.6) |
(13.4) |
||
Advance payments and progress billings |
(241.3) |
253.1 |
||
Asset impairment charges |
64.4 |
- |
||
Other |
12.0 |
1.4 |
||
Net cash provided by operating activities |
502.1 |
483.3 |
||
Cash provided (required) by investing activities: |
||||
Capital expenditures |
(211.0) |
(283.7) |
||
Proceeds from sale of Material Handling Products, net of cash divested |
- |
105.6 |
||
Other investing |
(0.7) |
8.9 |
||
Net cash required by investing activities |
(211.7) |
(169.2) |
||
Cash provided (required) by financing activities: |
||||
Net decrease in debt |
(7.7) |
(20.6) |
||
Purchase of stock held in treasury |
(148.0) |
(129.8) |
||
Other financing |
(26.9) |
(45.5) |
||
Net cash required by financing activities |
(182.6) |
(195.9) |
||
Effect of changes in foreign exchange rates on cash and cash equivalents |
(35.1) |
(5.8) |
||
Increase in cash and cash equivalents |
72.7 |
112.4 |
||
Cash and cash equivalents, beginning of period |
638.8 |
399.1 |
||
Cash and cash equivalents, end of period |
$ |
711.5 |
$ |
511.5 |
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