FMC Technologies has reported increase in the first quarter 2015 (Q1 2015) net income, despite a 7 percent drop in revenue.
For the Q1 2015, the Houston-based subsea specialist posted profit of $147.6 million, or diluted earnings per share of $0.63, compared to a net income of $135.2 million, or $0.57 diluted earnings per share for the year-ago quarter.
FMC Technologies generated first quarter 2015 revenue of $1.7 billion, down 7 percent from the prior-year quarter $1.82 billion, as stronger Subsea Technologies performance was offset by the continued strength of the U.S. dollar and the decline in the North American land market.
Subsea Technologies first quarter revenue was $1.2 billion, down 4 percent from the prior-year quarter due to the strength of the U.S. dollar. Subsea Technologies operating profit increased 19 percent from the prior-year quarter to $168.7 million, primarily due to improved execution and stronger project margins related to backlog conversion.
The company reported a total inbound orders of $969.0 million and included $552.0 million in Subsea Technologies orders. FMC’s backlog stands at $5.5 billion, including Subsea Technologies backlog of $4.8 billion.
“We delivered solid first quarter earnings, largely the result of the continued strength of our Subsea Technologies performance,” said John Gremp, Chairman, President, and CEO of FMC Technologies. “We are leveraging our backlog and execution momentum, while taking actions in all of our businesses to strengthen our operating structure. With our strong customer relationships, we expect to inbound at least $3 billion of subsea awards in 2015.”
The company said it expects to inbound at least $3 billion of Subsea Technologies awards in 2015.