FMC Technologies Takes Profit Hit

FMC Technologies has seen its third quarter 2015 net income slashed more than half from the prior-year quarter primarily due to the continued decline in the North American land market and the negative impact of the strengthening U.S. dollar in its subsea technologies segment.

For the Q3 2015, the Houston-based subsea specialist posted profit of $82 million, or diluted earnings per share of $0.35, compared to a net income of approx. $170 million, or $0.7 diluted earnings per share for the year-ago quarter.

Diluted earnings per share include pre-tax impairment charges of $60.2 million, or $0.20 per diluted share, and total company pre-tax business restructuring charges of $17.9 million, or $0.06 per diluted share.

The company generated revenue of $1.5 billion, down 22 percent from the corresponding period in 2014. Subsea technologies revenue was $1.1 billion with margins of 16.9 percent, excluding the business restructuring charges in the third quarter. FMC said it continues to expect at least $3 billion of Subsea technologies awards in 2015.

Backlog for the Company was $5.0 billion, including Subsea Technologies backlog of $4.3 billion.

John Gremp, Chairman and CEO of FMC Technologies, said: “The North American onshore market’s prolonged decline negatively impacted our company’s financial results. In response, we continued to take significant actions to reduce our costs.”

“Our Subsea Technologies segment delivered strong operating performance in the third quarter and we received two major awards resulting in another quarter of more than $1.0 billion in orders.”