Attached files
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| 8-K - FORM 8-K - FMC TECHNOLOGIES INC | d8k.htm |
Exhibit 99.1
| News Release | FMC Technologies Inc | |||
| 1803 Gears Road | ||||
| Houston, TX 77067 |
| Release | Immediate Release | |||
| Contact | Investors: | Bradley Alexander (281) 260-3665 | ||
| Media: | Ellen Bates (281) 445-6559 | |||
| Michael King (281) 931-2540 | ||||
FMC Technologies Reports Second Quarter 2011
Diluted Earnings per Share of $0.39
Highlights:
| • | Second quarter subsea systems orders of $939 million |
| • | Record subsea systems backlog of $4.2 billion |
| • | Record fluid control results |
| • | Guidance range for 2011 diluted earnings per share maintained at $1.60 to $1.70 |
HOUSTON, July 25, 2011 – FMC Technologies, Inc. (NYSE:FTI) today reported second quarter 2011 revenue of $1.2 billion, up 21 percent from the prior-year quarter. Diluted earnings per share were $0.39, equal to the prior-year quarter.
Total inbound orders of $1.5 billion were up 18 percent from the second quarter of 2010 and included $939 million in subsea systems orders. Backlog for the Company reached a record $5.0 billion including record subsea systems backlog of $4.2 billion. Subsea systems recorded its sixth consecutive quarterly backlog increase.
“We have booked almost $1.9 billion in subsea orders during the first half of 2011, and continue to believe $4.0 billion in orders for the year is possible,” said John Gremp, President and Chief Executive Officer. “Our subsea revenue of nearly $800 million during the second quarter has kept us on track to reach $3.3 billion revenue for the year. Our fluid control business is continuing to produce at record levels and as our capacity expansion comes online, we will be able to meet our customers’ growing demands.”
| FMC Technologies Reports Second Quarter 2011 Diluted Earnings per Share of $0.39 | 2 |
Review of Operations – Second Quarter 2011
Energy Production Systems
Energy Production Systems’ second quarter revenue was $967.6 million, including subsea systems revenue of $795 million. Surface wellhead revenue was up 13 percent from the second quarter of 2010 with stronger North American activity partially offset by market timing and execution issues in our international operations.
Energy Production Systems’ operating profit of $97.3 million decreased 25 percent from the prior-year quarter, due to lower margins in subsea systems combined with increased costs and less favorable mix in surface wellhead.
Energy Production Systems’ inbound orders for the second quarter were $1.2 billion, including subsea systems orders of $939 million. Backlog for Energy Production Systems was $4.5 billion, including $4.2 billion in subsea systems at the end of the second quarter.
Energy Processing Systems
Energy Processing Systems’ second quarter revenue of $262.9 million was 37 percent higher than the prior-year quarter. The increase came mainly from fluid control, with record revenue in the quarter.
Energy Processing Systems had record operating profit of $53.9 million in the second quarter, up 62 percent from the prior-year quarter. The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.
Energy Processing Systems’ inbound orders were a record $339.8 million in the second quarter led by strong orders in fluid control. Backlog for the segment finished the quarter at $421.3 million.
Corporate Items
Corporate expense in the second quarter was $10.6 million, an increase of $0.5 million from the prior-year quarter. Other expense, net, was $2.0 million, a decrease of $7.9 million from the prior-year quarter due largely to $4.0 million in foreign exchange gains in 2011 compared to a $2.7 million loss in 2010.
The Company ended the quarter with net debt of $44.8 million. Net interest expense was $2.1 million in the quarter.
The Company repurchased 149,000 shares of common stock in the quarter, at an average cost of $40.87 per share.
| FMC Technologies Reports Second Quarter 2011 Diluted Earnings per Share of $0.39 | 3 |
Depreciation and amortization for the second quarter was $26.3 million, up $0.9 million from the previous quarter. Capital expenditures for the second quarter totaled $61.8 million.
The Company recorded an effective tax rate of 30.9 percent for the second quarter.
Summary and Outlook
FMC Technologies reported second quarter diluted earnings per share from continuing operations of $0.39.
Total inbound orders of $1.5 billion were up 18 percent from the second quarter of 2010 and included $939 million in subsea systems orders. Backlog for the Company stands at $5.0 billion, including subsea systems record backlog of $4.2 billion.
The Company maintained guidance for 2011 diluted earnings per share from continuing operations in a range of $1.60 to $1.70.
FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry. Named by FORTUNE® Magazine as the World’s Most Admired Oil and Gas Equipment, Service Company in 2010, the Company has approximately 12,500 employees and operates 27 production facilities in 16 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. For more information, visit www.fmctechnologies.com.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and as modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company’s website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
FMC Technologies, Inc. will conduct its second quarter 2011 conference call at 9:00 a.m. EDT on Tuesday, July 26, 2011. The event will be available at www.fmctechnologies.com. An archived audio replay will also 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
(Unaudited and in millions, except per share amounts)
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue |
$ | 1,229.4 | $ | 1,012.5 | $ | 2,311.3 | $ | 2,062.8 | ||||||||
| Costs and expenses |
1,092.0 | 866.0 | 2,066.5 | 1,759.4 | ||||||||||||
| 137.4 | 146.5 | 244.8 | 303.4 | |||||||||||||
| Other income (expense), net |
2.5 | (2.9 | ) | 4.9 | (8.2 | ) | ||||||||||
| Income before net interest expense and income taxes |
139.9 | 143.6 | 249.7 | 295.2 | ||||||||||||
| Net interest expense |
(2.1 | ) | (2.4 | ) | (3.6 | ) | (4.7 | ) | ||||||||
| Income before income taxes |
137.8 | 141.2 | 246.1 | 290.5 | ||||||||||||
| Provision for income taxes |
42.2 | 44.4 | 64.8 | 94.3 | ||||||||||||
| Net Income |
95.6 | 96.8 | 181.3 | 196.2 | ||||||||||||
| Less: net income attributable to noncontrolling interests |
(1.3 | ) | (0.6 | ) | (1.8 | ) | (1.0 | ) | ||||||||
| Net income attributable to FMC Technologies, Inc. |
$ | 94.3 | $ | 96.2 | $ | 179.5 | $ | 195.2 | ||||||||
| Earnings per share attributable to FMC Technologies, Inc.: |
||||||||||||||||
| Basic |
$ | 0.39 | $ | 0.39 | $ | 0.74 | $ | 0.80 | ||||||||
| Diluted |
$ | 0.39 | $ | 0.39 | $ | 0.74 | $ | 0.79 | ||||||||
| Weighted average shares outstanding: |
||||||||||||||||
| Basic |
241.9 | 244.3 | 241.8 | 244.7 | ||||||||||||
| Diluted |
243.8 | 246.6 | 243.8 | 247.1 | ||||||||||||
FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
BUSINESS SEGMENT DATA
(Unaudited and in millions)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue |
||||||||||||||||
| Energy Production Systems |
$ | 967.6 | $ | 822.9 | $ | 1,824.0 | $ | 1,710.5 | ||||||||
| Energy Processing Systems |
262.9 | 192.4 | 489.0 | 359.9 | ||||||||||||
| Other revenue (1) and intercompany eliminations |
(1.1 | ) | (2.8 | ) | (1.7 | ) | (7.6 | ) | ||||||||
| $ | 1,229.4 | $ | 1,012.5 | $ | 2,311.3 | $ | 2,062.8 | |||||||||
| Income before income taxes |
||||||||||||||||
| Segment operating profit |
||||||||||||||||
| Energy Production Systems |
$ | 97.3 | $ | 129.6 | $ | 179.5 | $ | 287.2 | ||||||||
| Energy Processing Systems |
53.9 | 33.4 | 97.6 | 56.8 | ||||||||||||
| Total segment operating profit |
151.2 | 163.0 | 277.1 | 344.0 | ||||||||||||
| Corporate items |
||||||||||||||||
| Corporate expense |
(10.6 | ) | (10.1 | ) | (19.0 | ) | (19.1 | ) | ||||||||
| Other revenue and other expense, net (1) |
(2.0 | ) | (9.9 | ) | (10.2 | ) | (30.7 | ) | ||||||||
| Net interest expense |
(2.1 | ) | (2.4 | ) | (3.6 | ) | (4.7 | ) | ||||||||
| Total corporate items |
(14.7 | ) | (22.4 | ) | (32.8 | ) | (54.5 | ) | ||||||||
| Income before income taxes attributable to FMC Technologies, Inc. |
$ | 136.5 | $ | 140.6 | $ | 244.3 | $ | 289.5 | ||||||||
| (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. |
FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
BUSINESS SEGMENT DATA
(Unaudited and in millions)
| Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Inbound Orders |
||||||||||||||||
| Energy Production Systems |
$ | 1,184.5 | $ | 1,068.5 | $ | 2,280.2 | $ | 2,117.3 | ||||||||
| Energy Processing Systems |
339.8 | 225.7 | 606.9 | 406.0 | ||||||||||||
| Subtotal Energy Systems |
1,524.3 | 1,294.2 | 2,887.1 | 2,523.3 | ||||||||||||
| Other orders and intercompany eliminations |
(1.7 | ) | (1.9 | ) | (2.7 | ) | (4.4 | ) | ||||||||
| Total inbound orders |
$ | 1,522.6 | $ | 1,292.3 | $ | 2,884.4 | $ | 2,518.9 | ||||||||
| June 30 | ||||||||
| 2011 | 2010 | |||||||
| Order Backlog |
||||||||
| Energy Production Systems |
$ | 4,548.3 | $ | 2,595.5 | ||||
| Energy Processing Systems |
421.3 | 255.6 | ||||||
| Subtotal Energy Systems |
4,969.6 | 2,851.1 | ||||||
| Intercompany eliminations |
(5.3 | ) | (5.1 | ) | ||||
| Total order backlog |
$ | 4,964.3 | $ | 2,846.0 | ||||
FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
| Cash and cash equivalents |
$ | 428.0 | $ | 315.5 | ||||
| Trade receivables, net |
1,187.3 | 1,103.4 | ||||||
| Inventories, net |
695.0 | 566.5 | ||||||
| Other current assets |
448.3 | 359.9 | ||||||
| Total current assets |
2,758.6 | 2,345.3 | ||||||
| Property, plant and equipment, net |
692.7 | 609.0 | ||||||
| Goodwill |
284.6 | 274.8 | ||||||
| Intangible assets, net |
139.1 | 140.5 | ||||||
| Investments |
152.2 | 148.2 | ||||||
| Other assets |
172.8 | 126.4 | ||||||
| Total assets |
$ | 4,200.0 | $ | 3,644.2 | ||||
| Short-term debt and current portion of long-term debt |
$ | 7.0 | $ | 12.2 | ||||
| Accounts payable, trade |
469.3 | 344.1 | ||||||
| Advance payments and progress billings |
570.2 | 556.4 | ||||||
| Other current liabilities |
580.1 | 582.7 | ||||||
| Total current liabilities |
1,626.6 | 1,495.4 | ||||||
| Long-term debt, less current portion |
465.8 | 351.1 | ||||||
| Other liabilities |
540.7 | 475.4 | ||||||
| FMC Technologies, Inc. stockholders’ equity |
1,555.8 | 1,311.7 | ||||||
| Noncontrolling interest in consolidated companies |
11.1 | 10.6 | ||||||
| Total liabilities and equity |
$ | 4,200.0 | $ | 3,644.2 | ||||
FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in millions)
| Six Months Ended June 30 |
||||||||
| 2011 | 2010 | |||||||
| Cash provided (required) by operating activities: |
||||||||
| Net income attributable to FMC Technologies, Inc. |
$ | 179.5 | $ | 195.2 | ||||
| Depreciation and amortization |
51.7 | 52.3 | ||||||
| Trade accounts receivable, net |
(41.6 | ) | (92.9 | ) | ||||
| Inventories, net |
(115.2 | ) | 38.3 | |||||
| Accounts payable, trade |
110.7 | (50.8 | ) | |||||
| Advance payments and progress billings |
(8.5 | ) | (186.1 | ) | ||||
| Other |
(56.5 | ) | (20.1 | ) | ||||
| Net cash provided (required) by operating activities |
120.1 | (64.1 | ) | |||||
| Cash provided (required) by investing activities: |
||||||||
| Capital expenditures |
(102.8 | ) | (38.7 | ) | ||||
| Other investing |
(0.1 | ) | 1.9 | |||||
| Net cash required by investing activities |
(102.9 | ) | (36.8 | ) | ||||
| Cash provided (required) by financing activities: |
||||||||
| Net increase in debt |
107.6 | 181.8 | ||||||
| Issuance of capital stock |
0.6 | 1.4 | ||||||
| Purchase of stock held in treasury |
(7.2 | ) | (123.5 | ) | ||||
| Other financing |
(9.1 | ) | (13.3 | ) | ||||
| Net cash provided by financing activities |
91.9 | 46.4 | ||||||
| Effect of changes in foreign exchange rates on cash and cash equivalents |
3.4 | (2.4 | ) | |||||
| Increase (decrease) in cash and cash equivalents |
112.5 | (56.9 | ) | |||||
| Cash and cash equivalents, beginning of period |
315.5 | 460.7 | ||||||
| Cash and cash equivalents, end of period |
$ | 428.0 | $ | 403.8 | ||||