FMC Technologies Reports Fourth Quarter Diluted Earnings per Share from Continuing Operations of $0.70, up 49 Percent.Highlights: * Subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound orders of $2.0 billion in the quarter including the Total Pazflor project * Energy Systems backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at a record of $4.5 billion including a record $3.9 billion in subsea systems * Energy Production Systems and Energy Processing Systems operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. both up 66 percent compared to prior-year quarter * Company guidance for 2008 full year diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in the range of $2.75 to $2.85 HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- FMC Technologies FMC Technologies, Incorporated (NYSE: FTI), is an American machinery and oil services technology company. FMC Technologies was incorporated in 2000 when FMC Corporation divested its machinery businesses. FMC Technologies Inc. , Inc. (NYSE NYSE See: New York Stock Exchange :FTI FTI Free thyroxine index, see there ) today reported fourth quarter 2007 revenue of $1.4 billion, up 28 percent over the fourth quarter of 2006 led by the strength of its subsea systems business. Diluted earnings per share from continuing operations were $0.70, up 49 percent from $0.47 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the prior-year quarter. Inbound orders for the company in the quarter totaled $2.5 billion, of which $2.0 billion was in subsea systems primarily driven by the Total Pazflor award which had a value of approximately $980 million. Backlog reached $4.9 billion, including a record $3.9 billion for subsea systems. Operating profit in Energy Systems was strong, up 66 percent in both Energy Production Systems and Energy Processing Systems from the prior-year quarter. Operating profit in FoodTech and Airport Systems was up 39 percent and 12 percent respectively from the prior-year quarter. Full Year 2007 Results Full year 2007 revenue of $4.6 billion increased 23 percent from $3.8 billion in 2006, reflecting the continued growth of Energy Systems' businesses led by a 28 percent increase in subsea systems revenue. Full year 2007 earnings per diluted share from continuing operations of $2.30 were up 53 percent from 2006 earnings per diluted share of $1.50. Energy Systems' operating profit increased 47 percent over the prior year. Inbound orders totaled $6.9 billion up 52 percent over 2006 primarily on record subsea inbound orders of $4.4 billion. Total company backlog grew to $4.9 billion. "We are very pleased with our results in 2007," said Peter D. Kinnear Kinnear is the surname of:
, President and Chief Executive Officer. "We enter 2008 with a record backlog of $4.9 billion providing a solid base for continued growth this year and beyond. We are providing a full year estimate of 2008 diluted earnings per share in the range of $2.75 to $2.85 including FoodTech and Airport Systems, but excluding costs associated with the planned spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. ." Review of Operations - Fourth Quarter 2007 Energy Production Systems Energy Production Systems' fourth quarter revenue of $867.0 million increased 37 percent over the prior-year quarter due mainly to increased subsea systems sales. Revenue for subsea systems was $686 million in the quarter, up 35 percent from the prior-year quarter. Surface wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. revenue improved over 40 percent from the prior-year quarter. Energy Production Systems' operating profit of $85.5 million increased 66 percent over the prior-year quarter. The increase was due to higher volume and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in subsea systems and due to higher volume in surface wellhead. Energy Production Systems' inbound orders were $2.1 billion for the fourth quarter, up $1.0 billion over the prior-year quarter due to the strength of orders for subsea systems. Subsea systems' inbound orders were $2.0 billion in the quarter primarily driven by the Total Pazflor award which had a value of approximately $980 million. The Pazflor project was the second award in the quarter that included subsea processing systems. Energy Production backlog of $4.2 billion was up 105 percent from the prior-year quarter and up 43 percent sequentially. Subsea backlog was a record $3.9 billion at the end of the quarter. Energy Processing Systems Energy Processing Systems' fourth quarter revenue of $210.9 million was 13 percent higher than the prior-year quarter. The revenue improvement over the prior-year quarter was the result of demand from service companies for fluid control products including WECO WECO Western Electric Company (now Lucent Technologies) WECO Wealth, Education, Collaboration, and Opportunities (Fund Inc; Cleveland, OH) ([R])/Chiksan([R]) equipment, which were up over 18 percent from the prior-year quarter, and from strong demand for measurement solutions' products and systems in the oil and gas pipeline infrastructure market. Energy Processing Systems' fourth quarter operating profit of $39.3 million was 66 percent higher than the prior-year quarter. The improvement was the result of higher volume in both fluid control and measurement solutions as well as the absence of one-time costs incurred in the prior-year quarter. Energy Processing Systems' inbound orders were $184.3 million for the fourth quarter, down 16 percent from the prior-year quarter. Backlog was $330.5 million, up 8 percent from the prior-year quarter on strong measurement solutions orders. FoodTech FoodTech's revenue of $172.1 million in the fourth quarter was up 22 percent from the prior-year quarter due to increased sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Operating profit of $19.8 million was up 39 percent from the prior-year quarter on the higher volume. Inbound orders totaled $155.2 million in the quarter. Backlog was $164.3 million, up 2 percent from the prior-year quarter despite continued weakness in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. equipment market. Airport Systems Airport Systems' fourth quarter revenue of $116.9 million was up 9 percent compared to the fourth quarter of 2006 due to increased demand for Jetway([R]) and ground support equipment. Airport Systems' fourth quarter operating profit of $11.3 million was up 12 percent from the prior-year quarter due to the higher volume. Inbound orders totaled $97.8 million in the quarter. Backlog was $226.7 million, up 48 percent from the prior-year quarter on the strength of Jetway equipment and loader A program routine that copies a program into memory for execution. orders for Europe and Asia. Corporate Items Corporate expense in the fourth quarter of 2007 was $8.7 million, $0.3 million below the prior-year quarter. Other expense, net, of $1.2 million decreased $10.0 million from the prior-year. The decrease was driven by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack inventory related effects and net gains due to foreign currency hedging activities. Net interest expense in the fourth quarter of 2007 was $0.4 million, down $1.1 million from the prior-year quarter due to lower net debt. The company ended the year in a small net cash position, reducing net debt from the previous quarter by $158.8 million. In the quarter, the Company repurchased 655,350 shares of common stock for $36.6 million. Depreciation and amortization for the fourth quarter of 2007 was $22.3 million, up from $18.5 million in the prior-year quarter. Capital expenditures during the fourth quarter of 2007 totaled $81.9 million, up from $41.7 million in the prior-year quarter due mainly to capacity expansion projects in Energy Systems and investment in subsea intervention A procedure used in a lawsuit by which the court allows a third person who was not originally a party to the suit to become a party, by joining with either the plaintiff or the defendant. assets. The company recorded an income tax rate of 36.2 percent for continuing operations in the fourth quarter due to the country mix of income. Review of Operations - Full Year 2007 Energy Production Systems Energy Production Systems' revenue of $2.9 billion was up 28 percent from 2006. Subsea systems revenue of $2.3 billion increased 28 percent over the prior year. Surface wellhead revenue increased more than 25 percent over 2006 due to strong international market demand. The 2007 Energy Production Systems' segment operating profit of $287.9 million is up 51 percent from the prior year, primarily due to increased volume and improved operating margin in subsea systems. Energy Production Systems' inbound orders of $5.0 billion increased 77 percent over prior-year levels, an increase of $2.2 billion. Subsea systems inbound orders reached $4.4 billion in 2007, up 92 percent over 2006 as customer activity focused on deepwater projects including three awards for subsea processing systems. Backlog at year-end was $4.2 billion, up 105 percent from year-end 2006. Subsea systems backlog was at a record level of $3.9 billion, up 118 percent from $1.8 billion in the prior year. Energy Processing Systems Energy Processing Systems' 2007 revenue of $767.7 million was up 14 percent from 2006, primarily driven by service company demand for fluid control equipment which was up more than 22 percent over 2006. In addition, global demand for oil and gas pipeline infrastructure resulted in higher revenue in the measurement solutions business. Segment operating profit of $142.5 million improved $41.6 million or 41 percent on increased volume in fluid control and measurement solutions. Energy Processing Systems' inbound orders were a record $792.2 million, an increase of 4 percent over 2006. Backlog at year-end 2007 was $330.5 million, up 8 percent from the prior year. FoodTech FoodTech's revenue in 2007 of $593.0 million increased 19 percent from 2006. Segment operating profit of $56.1 million in 2007 improved 21 percent from $46.3 million in 2006. Both 2007 revenue and operating profit were records for FoodTech. Backlog of $164.3 million is up 2 percent from year-end 2006. Airport Systems Airport Systems' revenue in 2007 of $383.7 million was up 12 percent over 2006. Operating profit of $31.8 million improved 23 percent over the prior year. Both 2007 revenue and operating profit were records for Airport Systems. Backlog at year end was $226.7 million, up $74.0 million or 48 percent from 2006. Corporate Items Corporate expenses for the full year 2007 were $35.6 million compared to $32.9 million the prior year. Other expense, net, for 2007 totaled $9.3 million, down from $29.7 million in 2006. Net interest expense in 2007 was $9.4 million compared to $6.7 million in 2006. Depreciation and amortization for 2007 was $84.2 million, up from $70.3 million in 2006. Capital expenditures of $202.5 million were up $64.4 million from 2006 due mainly to capacity expansions in Energy Systems and investment in subsea intervention systems. The company repurchased 7.9 million shares of its common stock for $287.4 million in 2007, bringing its total to 16.4 million shares out of the current board authorization The right or permission to use a system resource; the process of granting access. See access control. of 30.0 million shares. Summary and Outlook FMC Technologies reported diluted earnings per share from continuing operations of $0.70, up 49 percent from the prior-year quarter. Energy Production Systems' and Energy Processing Systems' operating profits were both up 66 percent on the strength of the subsea systems, surface wellhead, and fluid control businesses. Subsea systems' orders increased $1.0 billion or 106 percent from the prior-year quarter, as its backlog reached a record $3.9 billion. FMC Technologies reported earnings per diluted share from continuing operations of $2.30 for the full year 2007, up 53 percent from the prior year. Subsea systems' revenue grew 28 percent to $2.3 billion, and subsea systems' backlog increased 118 percent from the prior year to a record $3.9 billion. Total company backlog reached a record $4.9 billion. The energy businesses are expected to have another strong year in 2008. The company estimates its full year 2008 diluted earnings per share from continuing operations to be in the range of $2.75 to $2.85 including FoodTech and Airport Systems, but excluding costs associated with the planned spin-off. FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company 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. The Company also produces food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. equipment for the food industry and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. equipment to service the aviation industry. Twice named as the Most Admired ad·mire v. ad·mired, ad·mir·ing, ad·mires v.tr. 1. To regard with pleasure, wonder, and approval. 2. To have a high opinion of; esteem or respect. 3. Oil and Gas, Equipment Service Company by FORTUNE magazine, FMC Technologies employs approximately 13,000 people and operates 33 manufacturing facilities in 19 countries. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2006 and may be 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 fourth quarter 2007 conference call at 9:00 a.m. (Eastern Standard Time) on Friday, February 15, 2008. The event will be available at www.fmctechnologies.com. It also will be available for replay after the event at the same website address. In the event of a disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of service or technical difficulty during the call, information will be posted at www.fmctechnologies.com/earnings. 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