Switzerland: Foster Wheeler Profit Dives

Foster Wheeler today reported net income for the second quarter of 2012 of $30.9 million, compared with $63.3 million, in the second quarter of 2011.

Net income in both quarterly periods was impacted by asbestos-related provisions. Excluding such items from both quarterly periods, net income in the second quarter of 2012 was $34.1 million, compared with $65.3 million in the year-ago quarter.

For the first six months of 2012, net income was $71.5 million,  compared with $86.3 million for the first six months of 2011.

Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “The company’s adjusted net income was below the average quarter of 2011 as the positive impact on earnings resulting from increased scope revenues in both business groups was more than offset by higher sales pursuits costs – mainly proposal costs – as well as unfavorable utilization rates and other items. These results are certainly not indicative of a quarterly run rate, and we continue to expect that 2012 earnings per share will be materially higher than 2011.”

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LNG World News Staff, July 31, 2012