FMC’s Subsea Technologies Achieves Record Backlog

FMC Technologies, Inc. reported first quarter 2014 revenue of $1.8 billion, up 11 percent from the prior-year quarter. Diluted earnings per share were $0.57 compared to $0.43 in the prior-year quarter.

Total inbound orders were $2.6 billion and included $1.9 billion in Subsea Technologies orders. Subsea Technologies backlog was $6.8 billion.

“As a result of strong orders in the quarter, Subsea Technologies achieved record backlog,” said John Gremp, Chairman, President and CEO of FMC Technologies. “We delivered solid subsea revenue and operating profit and expect to see this trend continue throughout the remainder of the year.”

“Surface Technologies operational performance was strong as our international surface wellhead business delivered another solid quarter and our North American business strengthened.”

Subsea Technologies

Subsea Technologies first quarter revenue was $1.2 billion, up 10 percent from the prior-year quarter.

The operating profit was up 45 percent from the prior-year quarter to $141.7 million primarily as a result of better execution on a more favorable sales mix.

Subsea Technologies inbound orders for the first quarter were $1.9 billion and backlog was $6.8 billion.

Surface Technologies

Surface Technologies first quarter revenue was $479.5 million, up 14 percent from the prior-year quarter.

Surface Technologies operating profit increased 53 percent from the prior-year quarter to $87.7 million driven by volume growth in the international surface wellhead and North American fluid control businesses.

The inbound orders for the first quarter were $527.3 million and backlog was $789.5 million.

Energy Infrastructure

Energy Infrastructure first quarter revenue was $145.6 million, up eight percent from the prior-year quarter, while operating profit increased 29 percent from the prior-year quarter to $15.6 million.

The inbound orders for the first quarter were $141.3 million and backlog was $285.0 million.

Corporate Items

Corporate expense in the first quarter was $14.9 million, an increase of $4.6 million from the prior-year quarter. Other revenue and other expense, net, increased $2.7 million from the prior-year quarter to $19.7 million.

The Company ended the quarter with net debt of $1.1 billion. Net interest expense was $8.2 million in the quarter.

The Company repurchased approximately 899,000 shares of common stock in the quarter, at an average cost of $50.98 per share.

Depreciation and amortization for the first quarter was $54.1 million, down $2.7 million from the sequential quarter. Capital expenditures for the first quarter were $92.0 million.

The Company recorded an effective tax rate of 33.2 percent for the first quarter.

Summary and Outlook

FMC Technologies reported first quarter diluted earnings per share of $0.57.

Total inbound orders of $2.6 billion in the first quarter included $1.9 billion in Subsea Technologies orders. The Company’s backlog stands at $7.8 billion, including Subsea Technologies backlog of $6.8 billion.

The Company’s guidance for 2014 diluted earnings per share is $2.55 to $2.75, but now excludes both the expected results from operations of the material handling products business post divestiture and an anticipated gain associated with the sale.