FMC Technologies sees second quarter profit cut in half
FMC Technologies, Inc., an American global provider of equipment and services for the energy industry, has informed that its net income for the second quarter of 2015 has been cut by more than half to $107.9 million from $226.3 million in the same period last year.
The company posted a second quarter 2015 revenue of $1.7 billion, down 15% from the prior-year quarter primarily due to the continued decline in the North American land market and its severe impact on its Surface Technologies segment revenue.
According to FMC Technologies, total inbound orders were $1.4 billion, including $1 billion in Subsea Technologies orders. Backlog for the company was $5.3 billion, including Subsea Technologies backlog of $4.7 billion.
“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.”
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 Technologies inbound orders for the second quarter were $1 billion and backlog was $4.7 billion.
In its quarterly results report, the company said it expects at least $3 billion of Subsea Technologies awards in 2015.