Forum Energy Technologies, Inc. announced that, based on currently available information, the company now expects full year 2012 earnings per diluted share of $1.72 to $1.74. This is below the company’s previous guidance range of $1.83 to $1.88.
The company indicated the reduction in the expected range for full year 2012 earnings per diluted share is primarily the result of:
– Significantly lower fourth quarter 2012 customer spending on capital equipment and consumable products than previously anticipated, especially in the company’s Drilling product line.
– Customer deferrals in accepting delivery of higher margin capital equipment orders from existing backlog.
– Under absorption of manufacturing costs.
– Acquisition transaction expenses, severance, weather related inefficiencies, and other transitory costs.
Cris Gaut, Chairman and Chief Executive Officer of Forum , remarked, “We are disappointed with our performance during the fourth quarter 2012. However, we believe the lower customer demand experienced at year end and our reduced profit margins are transitory in nature and mostly relate to issues specific to the fourth quarter.”
Forum also announced that it scheduled a conference call to discuss its Fourth Quarter 2012 financial results on February 15, 2013.
[mappress] Press Release, January 17, 2013