FMC Technologies Q3 Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Energy industry technology solutions provider FMC Technologies, Inc. (FTI) reported Tuesday a profit for the third quarter that surged from last year, reflecting double-digit revenue growth amid strong performance of subsea technologies and surface technologies segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings forecast for the full-year 2014.

"Quarterly subsea margins are at the highest level we have delivered in over four years. Our focus on execution, the strength of our backlog, and the growth of our subsea service revenue has positioned us to continue delivering mid-teen level margins," Chairman, President and CEO John Gremp said in a statement.

The Houston, Texas-based company reported net income of $169.8 million or $0.72 per share for the third quarter, higher than $116.0 million or $0.49 per share in the prior-year quarter.

Results for the latest quarter included a $0.07 per share charge related to an intercompany foreign currency transaction. Excluding the charge, adjusted earnings per share would have been $0.79 per share.

On average, 27 analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 15 percent to $1.98 billion from $1.72 billion in the same quarter last year, and topped twenty-one Wall Street analysts' consensus estimate of $1.97 billion.

Subsea technologies revenues grew 16 percent to $1.30 billion, and surface technologies revenues increased 22 percent to $556.0 million, while energy Infrastructure revenues declined 18 percent to $124.9 million from the year-ago quarter.

"In Surface Technologies, we delivered record earnings on the growth of our North American fluid control business, as well as continued strong performance in our international surface wellhead business," Gremp added.

Total segment operating profit for the quarter improved to $319.1 million from $213.5 million last year, driven by record subsea technologies and surface technologies operating profit.

Total inbound orders for the quarter declined to $1.75 billion from $2.37 billion in the same quarter last year. Total order backlog decreased to $6.83 billion from $7.37 billion in the year-ago quarter.

Looking ahead to fiscal 2014, the company raised its adjusted earnings guidance to a range of $2.75 to $2.85 per share from prior guidance range of $2.70 to $2.80 per share. Street is currently looking for full-year 2014 earnings of $2.81 per share.

FTI closed Tuesday's regular trading session at $52.68, up $1.81 or 3.56 percent on a volume of 2.56 million shares.