Foster Wheeler Profits Drop

Foster Wheeler reported a loss from continuing operations for the fourth quarter of 2013 of $37.2 million, compared with income from continuing operations of $18.6 million in the fourth quarter of 2012.

Income/loss from continuing operations in both quarterly periods was impacted by net asbestos-related provisions. Excluding such items from both quarterly periods, the adjusted income from continuing operations in the fourth quarter of 2013 was $2.8 million, compared with $41.3 million in the year-ago quarter.

For the full-year 2013, income from continuing operations was $96.9 million, compared with $149.2 million for 2012. Excluding the asbestos provisions from both years, adjusted income from continuing operations for 2013 was $127.1 million, compared with $179.1 million in 2012.

Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “We are encouraged by our backlog and booking data for the fourth quarter of 2013. Specifically, our Global Engineering and Construction Group reported a 26% increase in scope revenues as compared to the average quarter of 2012. The Global E&C Group also reported its second consecutive quarter of record-level scope backlog. In addition, scope new orders in our Global Power Group were 59% above the average quarter of 2012.”

Masters said, “This backlog and booking data supports our view that the company’s enhanced operating performance in 2014 will be driven by top-line growth in both of our business groups, led in particular by a sharp increase in scope revenues in the Global E&C Group. Nevertheless, the company’s typical volatility in quarterly results will likely be evident in the first quarter of 2014, where we expect to see income well below run-rate levels.”

Press Release, February 27, 2014