Welcome!

News Feed Item

FMC Technologies Reports Fourth Quarter 2013 Diluted Earnings per Share of $0.74

- Record quarterly Subsea Technologies revenue and operating profit of $1.4 billion and $209.5 million, respectively

HOUSTON, Feb. 6, 2014 /PRNewswire/ -- FMC Technologies, Inc. (NYSE:FTI) today reported fourth quarter 2013 revenue of $2.0 billion, up 11 percent from the prior-year quarter.  Diluted earnings per share were $0.74 compared to $0.50 in the prior-year quarter.  The quarterly earnings included a charge related to the 2013 Multi Phase Meters earn-out adjustment of $11.1 million or $0.05 per share, compared to a $17.5 million or $0.07 per share charge in the prior-year quarter.

Total inbound orders were $1.8 billion and included $1.0 billion in Subsea Technologies orders.  Backlog for the Company was $7.0 billion, including Subsea Technologies backlog of $6.0 billion.

Full Year 2013 Results

Total Company revenue for 2013 was $7.1 billion, and operating profit was $879.6 million.  The full year 2013 diluted earnings per share were $2.10.

"We are pleased to report our twelfth consecutive year of earnings growth. Diluted earnings per share of $2.10 increased 18 percent year over year," said John Gremp, Chairman, President and CEO of FMC Technologies. "We delivered record quarterly subsea revenue and operating profit on improved execution in the fourth quarter.  For 2014, we expect to see another year of subsea revenue growth along with margin expansion for Subsea Technologies as the outlook for activity remains strong."

"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 $1.4 billion, up 13 percent from the prior-year quarter.  

Subsea Technologies operating profit was up 44 percent from the prior-year quarter to $209.5 million primarily as a result of volume growth and improved execution.  The revenue and operating profit also includes a $23.3 million net benefit associated with a retroactive Angolan tax adjustment.

Subsea Technologies inbound orders for the fourth quarter were $1.0 billion and backlog was $6.0 billion.

Surface Technologies

Surface Technologies fourth quarter revenue was $489.0 million, up 10 percent from the prior-year quarter driven by higher volume in surface wellhead.

Surface Technologies operating profit increased five percent from the prior-year quarter to $68.1 million driven by volume growth in the international surface wellhead business.

Surface Technologies inbound orders for the fourth quarter were $622.2 million and backlog was $742.4 million.

Energy Infrastructure

Energy Infrastructure fourth quarter revenue was $172.6 million, up three percent from the prior-year quarter, while operating profit decreased 20 percent from the prior-year quarter to $22.6 million.    

Energy Infrastructure inbound orders for the fourth quarter were $160.8 million and backlog was $288.4 million.

Corporate Items

Corporate expense in the fourth quarter was $13.1 million, an increase of $1.7 million from the prior-year quarter. Other revenue and other expense, net, decreased $30.0 million from the prior-year quarter to $10.0 million, due largely to a favorable variance of $12.1 million in foreign exchange gain, a decrease of $6.4 million related to the earn-out associated with the acquisition of Multi Phase Meters, and a favorable change in LIFO inventory costs of $5.8 million.

The Company ended the quarter with net debt of $973.2 million. Net interest expense was $8.6 million in the quarter.

The Company repurchased approximately 884,000 shares of common stock in the quarter, at an average cost of $51.38 per share.

Depreciation and amortization for the fourth quarter was $56.8 million, up $4.9 million from the sequential quarter. Capital expenditures for the fourth quarter were $76.6 million.

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

FMC Technologies reported fourth quarter diluted earnings per share of $0.74.

Total inbound orders of $1.8 billion in the fourth quarter included $1.0 billion in Subsea Technologies orders. The Company's backlog stands at $7.0 billion, including Subsea Technologies backlog of $6.0 billion.

The Company's guidance range for 2014 diluted earnings per share is $2.55 to $2.75.

FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry. Named by Forbes® Magazine as one of the World's Most Innovative Companies in 2013, the Company has approximately 19,300 employees and operates 30 production facilities in 17 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. 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 first quarter 2014 conference call at 9:00 a.m. ET on Wednesday, April 23, 2014. 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


Twelve Months Ended



December 31


December 31



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 FMC Technologies, Inc.

$

177.8

$

120.4

$

501.4

$

430.0










Earnings per share attributable to FMC Technologies, Inc.:









  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

 

 

FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES

BUSINESS SEGMENT DATA

(Unaudited and in millions)













Three Months Ended



Twelve Months Ended



December 31



December 31



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 FMC Technologies, Inc.

$

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.

 

 

FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES

BUSINESS SEGMENT DATA

(Unaudited and in millions)












Three Months Ended


Twelve Months Ended



December 31


December 31



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






























December 31







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





 

 

FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)













December 31,


December 31,



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

FMC Technologies, Inc. stockholders' equity


2,317.2


1,836.9

Noncontrolling interest


19.1


16.3

Total liabilities and equity

$

6,605.6

$

5,902.9

 

 

FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in millions)








Twelve Months Ended



December 31



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

 

(Logo: http://photos.prnewswire.com/prnh/20081222/LAM028LOGO)

SOURCE FMC Technologies, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.