USA: FMC Technologies on Pace for Record Year

FMC Technologies, Inc. reported first quarter 2013 revenue of $1.6 billion, up 18 percent from the prior-year quarter. Diluted earnings per share were $0.43 compared to $0.41 in the prior-year quarter.

Total inbound orders were $1.8 billion and included $1.2 billion in Subsea Technologies’ orders. Backlog for the Company was $5.4 billion, including Subsea Technologies’ backlog of $4.6 billion.

“We are pleased to report another quarter of strong subsea orders and revenue,” said John Gremp, Chairman and CEO of FMC Technologies. “Additionally, we are encouraged by the overall subsea industry awards this quarter and believe we are on pace for a record year.”

“Surface Technologies’ international surface wellhead business delivered strong performance again in the first quarter. We expect this to continue as activity in both the Middle East and Europe continues to grow.”

Review of Operations — First Quarter 2013

Subsea Technologies

Subsea Technologies’ first quarter revenue was $1.1 billion, up 22 percent from the prior-year quarter as the subsea market continues to grow.

Subsea Technologies’ operating profit increased 32 percent from the prior-year quarter to $99.4 million consistent with the growth in volume.

Subsea Technologies’ inbound orders in the first quarter were $1.2 billion and backlog was $4.6 billion.

Surface Technologies

Surface Technologies’ first quarter revenue was $421.7 million, up 12 percent from the prior-year quarter driven by higher volume in international surface wellhead activity and the inclusion of revenue from completion services, which was partially offset by reduced fluid control sales.

Surface Technologies’ operating profit decreased 27 percent from the prior-year quarter to $57.3 million as the result of reduced fluid control activity in North America.

Surface Technologies’ inbound orders for the first quarter were $448.9 million and backlog was $522.3 million.

Energy Infrastructure

Energy Infrastructure’s first quarter revenue was $135.6 million, down one percent from the prior-year quarter.

Energy Infrastructure’s operating profit increased nine percent from the prior-year quarter to $10.1 million in the first quarter driven by improved performance in loading systems and separation systems.

Energy Infrastructure’s inbound orders for the first quarter were $134.3 million and backlog was $291.9 million.

Corporate Items

Corporate expense in the first quarter was $10.3 million, an increase of $1.8 million from the prior-year quarter. Other revenue and other expense, net, was $17.0 million, a decrease of $3.9 million from the prior-year quarter.

The Company ended the quarter with net debt of $1.4 billion. Net interest expense was $8.1 million in the quarter.

The Company repurchased approximately 570,000 shares of common stock in the quarter, at an average cost of $47.32 per share.

Depreciation and amortization for the first quarter was $49.0 million, up $2.1 million from the sequential quarter. Capital expenditures for the first quarter were $78.9 million.

The Company recorded an effective tax rate of 21.9 percent for the first quarter.

Summary and Outlook

FMC Technologies reported first quarter diluted earnings per share of $0.43.

Total inbound orders of $1.8 billion in the first quarter included $1.2 billion in Subsea Technologies’ orders. The Company’s backlog stands at $5.4 billion, including Subsea Technologies’ backlog of $4.6 billion.

The Company reiterated its guidance for 2013 diluted earnings per share of $2.05 to $2.25 as Subsea Technologies operating profit will improve during the remainder of the year and Surface Technologies should begin to see improvement in the second half of 2013.

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Press Release, April 24, 2013