FMC Technologies’ Revenue 23 Percent Up (USA)

FMC Technologies, Inc. reported fourth quarter 2012 revenue of $1.8 billion, up 23 percent from the prior-year quarter. Diluted earnings per share were $0.50 compared to $0.41 in the prior-year quarter. This included a charge related to the 2012 Multi Phase Meters earn-out adjustment of $17.5 million or $0.07 per share.

Total inbound orders were $1.9 billion and included $1.4 billion in Subsea Technologies’ orders. Backlog for the Company was $5.4 billion, including Subsea Technologies’ backlog of $4.6 billion.

Full Year 2012 Results

Total Company revenue for 2012 was $6.2 billion, and operating profit was $784.7 million. The full year 2012 diluted earnings per share were $1.78.

“We are pleased to report record full year subsea revenue and operating profit,” said John Gremp, Chairman and CEO of FMC Technologies. “For 2013, we expect to see continued revenue and earnings growth within Subsea Technologies.”

“Surface Technologies international surface wellhead business delivered its strongest quarter. We expect this solid performance in the international market to continue into 2013, while the timing of the recovery in the North American market remains uncertain.”

Review of Operations — Fourth Quarter 2012

Subsea Technologies

Subsea Technologies’ fourth quarter revenue was $1.2 billion, up 28 percent from the prior-year quarter.

Subsea Technologies’ operating profit more than doubled from the prior-year quarter to $151.2 million due to volume growth and improved performance.

Subsea Technologies’ inbound orders in the fourth quarter were $1.4 billion and backlog was $4.6 billion.

Surface Technologies

Surface Technologies’ fourth quarter revenue was $443.7 million, up 19 percent from the prior-year quarter driven by higher volume in surface wellhead and the inclusion of revenue from our Pure Energy Services Ltd. acquisition completed in October 2012.

Surface Technologies’ operating profit decreased 15 percent from the prior-year quarter to $64.6 million in the fourth quarter as the result of reduced fluid control and surface wellhead activity in North America.

Surface Technologies’ inbound orders for the fourth quarter were $388.8 million and backlog was $500.8 million.

Energy Infrastructure

Energy Infrastructure’s fourth quarter revenue was $166.6 million, up 10 percent from the prior-year quarter.

Energy Infrastructure’s operating profit increased 13 percent from the prior-year quarter to $22.8 million in the fourth quarter driven by improved project performance.

Energy Infrastructure’s inbound orders for the fourth quarter were $148.6 million and backlog was $298.0 million.

Corporate Items

Corporate expense in the fourth quarter was $11.4 million, an increase of $0.3 million from the prior-year quarter. Other revenue and other expense, net, was $40.0 million, an increase of $24.9 million from the prior-year quarter. This was largely due to an increase of $17.2 million from the prior-year quarter related to the charge associated with the earn-out for the acquisition of Multi Phase Meters and a charge associated with the change to the Norway pension of $8.6 million.

The Company ended the quarter with net debt of $1.3 billion. Net interest expense was $10.7 million in the quarter.

The Company repurchased approximately 927,000 shares of common stock in the quarter, at an average cost of $42.21 per share.

Depreciation and amortization for the fourth quarter was $46.9 million, up $13.1 million from the sequential quarter. Capital expenditures for the fourth quarter were $122.9 million.

The Company recorded an effective tax rate of 31.8 percent for the fourth quarter.

Summary and Outlook

FMC Technologies reported fourth quarter diluted earnings per share of $0.50.

Total inbound orders of $1.9 billion in the fourth quarter included $1.4 billion in Subsea Technologies’ orders. The Company’s backlog stands at $5.4 billion, including Subsea Technologies’ backlog of $4.6 billion.

For 2013, company expects increasing Subsea Technologies revenue and margins and continued solid performance in international surface wellhead, offset by a challenging North American land market.

The Company’s guidance for 2013 diluted earnings per share is a range of $2.05 to $2.25.

[mappress]
Press Release, February 13, 2013