USA: Record Subsea Revenue for FMC Technologies

FMC Technologies, Inc. yesterday reported fourth quarter 2011 revenue of $1.5 billion, up 36 percent from the prior-year quarter.

Total inbound orders of $1.8 billion were up 14 percent from the prior-year quarter and included $1.3 billion in Subsea Technologies orders.

Backlog for the Company was $4.9 billion including Subsea Technologies backlog of $4.1 billion.

Total Company revenue for the full year2011 was $5.1 billion, and total Company operating profit was $619.3 million.

“We are pleased to report that we reached a record $3.3 billion of subsea revenue in 2011,” said John Gremp, Chairman, President and CEO of FMC Technologies. “However, our fourth quarter Subsea Technologies’ margins came in below our guidance due to higher project costs and expenses associated with our growth, which lowered quarterly results. In 2012, we expect continued growth in the subsea market with both sales and orders exceeding 2011, and improved operating margin performance.”

“Given the market outlook, we expect 2012 to be our eleventh consecutive year of earnings growth, and our estimate for diluted earnings per share is $2.10 to $2.25.”

Subsea Technologies’ fourth quarter revenue was $963.9 million, up 38 percent from the prior-year quarter. Operating profit of $69.8 million decreased 19 percent from the prior-year quarter, primarily due to charges of $19 million on the Laggan-Tormore project, higher than expected charges primarily related to West Africa project delays, and costs and inefficiencies associated with the increasing workforce to support growth.

FMC Tehcnologies said it expected thatSubsea Technologies sales and orders will in 2012 with improved operating margins.

[mappress]
Offshore Energy Today Staff, February 15, 2012