FMC Technologies Posts Revenue Drop
FMC Technologies reported second quarter 2015 revenue of $1.7 billion, down 15 percent from the prior-year quarter.
The revenue dropped primarily due to the continued decline in the North American land market and its severe impact on Surface Technologies segment revenue, FMC said.
Diluted earnings per share were $0.46 which included pre-tax business restructuring charges of $9.5 million, or $0.03 per diluted share, and a U.S. tax charge of $8.0 million, or $0.03 per diluted share, related to a tax settlement.
Total inbound orders were $1.4 billion, including $1.0 billion in Subsea Technologies orders. Backlog for the Company was $5.3 billion, including Subsea Technologies backlog of $4.7 billion.
Subsea Technologies second quarter revenue was $1.2 billion, down 7 percent from the prior-year quarter due to the strength of the U.S. dollar. Excluding the impact of foreign currency translation, total revenue increased by $62.2 million year-over-year.
Subsea Technologies operating profit decreased 5 percent from the prior-year quarter to $183.5 million, primarily due to the decrease in revenue and $5.4 million of business restructuring costs. Excluding the impact of foreign currency translation, total operating profit increased by $15.3 million year-over-year.
“Subsea orders were stronger in the second quarter, as we received just over $1.0 billion of awards,” said John Gremp, Chairman and CEO of FMC Technologies. “We have increased confidence of exceeding $3 billion of subsea awards this year. Because our execution remains solid, we maintain our expectation of delivering Subsea Technologies margins of approximately 15 percent for the full year. Our Surface Technologies segment was severely impacted by the decline in North American activity. We continue to take actions to change our business model and improve our operating effectiveness to address current market conditions and to be well positioned as the market improves.”