FMC Technologies Reports Strong Second Quarter Diluted Earnings per Share of $0.93, up 121 percent

-- Energy Systems' revenue improved 30 percent from prior-year quarter

-- Subsea sales of $453 million improved 23 percent from prior-year quarter

-- Backlog reaches another record at $2.3 billion

-- Company records a gain of $17.1 million for settlement of Sonatrach claims

-- Company increased full year 2006 earnings per diluted share estimate

FMC Technologies, Inc. (NYSE:FTI) today reported second quarter2006 revenue of $998.4 million, up 23 percent over the second quarterof 2005 on the strength of Energy Systems. Net income for the secondquarter of 2006 was $65.5 million, or $0.93 per diluted share, andincludes a pre-tax gain of $17.1 million, or $0.15 per diluted share,from the settlement of claims pertaining to the Sonatrach project.This compares to an $11.9 million pre-tax loss provision, or $0.10 perdiluted share, for the Sonatrach project in the second quarter of2005. Also recorded in the quarter was $1.9 million of net income, or$0.03 per diluted share, associated with the sale of trademarksrelated to a discontinued operation.

The Company increased estimated full-year 2006 earnings perdiluted share from a range of $2.60 to $2.80 to a range of $2.80 to$3.00, excluding the $0.15 per diluted share benefit from theSonatrach claims settlement and the $0.03 per diluted share benefitfrom a discontinued operation.

Backlog reached another record at $2.3 billion. Subsea backloggrew to $1.5 billion, up 25 percent from the prior year and 6 percentsequentially.

"We had another outstanding quarter. Not only did our operationsperform well, but we also reached a favorable conclusion on theoutstanding claims relating to the Sonatrach project," said Joseph H.Netherland, Chairman and Chief Executive Officer. "Energy Systemsrevenue grew 30 percent over the prior-year quarter with record subseasales of $453 million and Energy Processing operating margins were atrecord levels. As a result of this performance and the expectation forcontinuing high oilfield activity levels for the remainder of 2006, wehave once again increased our full-year earnings estimate."

Review of Operations - Second Quarter 2006

Energy Systems

Revenue for Energy Systems, comprising Energy Production Systemsand Energy Processing Systems, was $772.5 million in the secondquarter of 2006, up 30 percent from $594.2 million in the secondquarter of 2005. Energy Systems' operating profit for the secondquarter was $94.3 million, up from $32.9 million in the same periodlast year. Second quarter 2006 operating profit included a $17.1million benefit from the settlement of claims associated with theSonatrach project. Second quarter 2005 segment operating profitincluded an $11.9 million pre-tax loss provision for the Sonatrachproject. Excluding the impact of Sonatrach from both quarters,operating profit improved 72 percent.

Energy Systems' inbound orders were $880.5 million in the secondquarter. Backlog of approximately $2.0 billion was up 6 percentsequentially and 26 percent from the prior year.

Energy Production Systems

Energy Production Systems' second quarter sales of $614.2 millionincreased 30 percent over the prior-year quarter, due mainly to highersubsea volume. Revenue for subsea systems reached a record $453million in the quarter, up more than 23 percent from the prior-yearquarter and sequentially. Surface systems revenue improved almost 30percent over the prior-year quarter while floating systems' revenuewas almost triple the prior-year quarter. Floating systems'performance in the second quarter of 2006 and 2005 included revenuefrom the Sonatrach project of $15.0 million and $10.1 million,respectively.

Energy Production Systems' operating profit of $67.4 million is$48.1 million higher than the prior-year quarter or up 250 percent andincludes a $17.1 million pre-tax benefit from the settlement of claimspertaining to the Sonatrach project. Energy Production Systems' secondquarter 2005 segment operating profit included an $11.9 millionpre-tax loss provision for the Sonatrach contract. The remainingoperations of floating systems and subsea systems contributed to theincrease in profitability through higher sales and operating marginscompared with the prior-year quarter.

Energy Production Systems' inbound orders were $698.0 million forthe second quarter. Backlog reached $1.7 billion. Subsea backlog grewto $1.5 billion, and subsea sales set a new quarterly record of $453million.

Energy Processing Systems

Energy Processing Systems' second quarter revenue of $158.8million was 29 percent higher than the prior-year period. The revenueimprovement was the result of strong demand for WECO(R)/Chiksan(R)equipment due to the strength in U.S. land drilling activity, as wellas a strong market for LNG (Liquefied Natural Gas) loading systems.

Energy Processing Systems' second quarter operating profit of$26.9 million was almost double the $13.6 million reported in thesecond quarter of 2005. Energy Processing Systems' second quarteroperating profit improved 15 percent sequentially. The operatingprofit improvement is the result of higher WECO(R)/Chiksan(R)equipment volume, pricing improvement in several product lines, andhigher loading systems and material handling volume and efficiencies.

Energy Processing Systems' inbound orders were $182.8 million forthe second quarter, up 15 percent from the prior-year quarter due tostronger demand for WECO(R)/Chiksan(R) equipment. Inbound orders wereup 21 percent sequentially due to increased demand for LNG loadingsystems and measurement solutions. Backlog of $237.5 million is 48percent higher than the prior year, and 11 percent higher than theprevious quarter.

FoodTech

FoodTech's second quarter revenue of $148.1 million was up 6percent from the second quarter of 2005 due primarily to highervolumes of freezing and cooking equipment in the North America andLatin America poultry processing markets. Operating profit of $15.4million improved $3.1 million or 25 percent from the prior-yearperiod, due mainly to increased demand for equipment from the poultrymarket. Backlog was $141.1 million, down from $152.9 million in theprior-year quarter.

Airport Systems

Airport Systems' second quarter revenue of $79.2 million was $2.8million below the prior-year quarter due mainly to lower volumes ofground support equipment and Halvorsen loaders. Partially offsettingwere stronger sales of passenger boarding bridges and increasedbusiness for Airport Services. Airport Systems' second quarteroperating profit of $4.8 million was slightly above the prior-yearperiod due to operating margin improvement. Inbound orders were $123.6million in the quarter reflecting strong demand for ground supportequipment and passenger boarding bridge projects. Backlog is $174.0million.

Corporate Items

Corporate expense in the second quarter of 2006 was $8.6 million,$1.9 million above the prior-year period and other expense, net, of$9.0 million increased $2.3 million due mainly to higher incentivecompensation expense.

Net interest expense in the second quarter of 2006 was $2.3million, up $1.1 million from the prior-year quarter on higher averagedebt.

Net debt of $152.3 million increased from $103.0 million atyear-end 2005 due mainly to working capital increases, capitalspending to support energy growth and stock repurchases.

Depreciation and amortization for the second quarter of 2006 was$17.5 million, up from $16.1 million in the prior-year quarter.

Capital expenditures during the second quarter of 2006 totaled$32.1 million, up from $17.6 million in the prior-year quarter dueprimarily to capacity expansion projects in Energy Systems.

Summary and Outlook

FMC Technologies reported a strong second quarter with revenue of$998.4 million, up 23 percent over the prior-year quarter. Net incomewas $65.5 million, or $0.93 per diluted share, on the strength ofEnergy Systems. The Company reached a favorable conclusion withSonatrach and recorded $17.1 million pre-tax, or $0.15 per dilutedshare, from the settlement of claims pertaining to the Sonatrachproject. Subsea systems revenue grew 23 percent and backlog increased25 percent from the prior-year quarter. Increased drilling activitysignificantly impacted the Company's WECO(R)/Chiksan(R) businessresulting in increased revenue and operating profit. FoodTechdelivered revenue and operating profit improvement over the prior-yearquarter. Despite lower Airport Systems revenue, operating profitsimproved slightly on improved margin performance. Total companybacklog reached a record $2.3 billion of which $1.5 billion is forsubsea systems.

The Company's energy businesses continue to expect another strongyear in 2006 driven by the secular growth of subsea and the continuinghigh oilfield activity levels. FoodTech earnings are expected toimprove over 2005. Airport Systems 2006 earnings are expected to be inline with 2005 performance.

The Company increased its estimate for full-year 2006 earnings toa range of $2.80 to $3.00 per diluted share, which excludes the $0.15per diluted share benefit from Sonatrach claims settlement and thediscontinued operations benefit of $0.03 per diluted share.

FMC Technologies, Inc. (www.fmctechnologies.com) is a globalleader providing mission-critical technology solutions for the energy,food processing and air transportation industries. The Companydesigns, manufactures and services technologically sophisticatedsystems and products for its customers through its Energy Systems(comprising Energy Production and Energy Processing), FoodTech andAirport Systems businesses. FMC Technologies employs approximately10,000 people and operates 32 manufacturing facilities in 17countries.

This release contains forward-looking statements as defined in thePrivate Securities Litigation Reform Act of 1995. Forward-lookingstatements are information of a non-historical nature and are subjectto risks and uncertainties that are beyond the Company's ability tocontrol. Forward-looking statements are qualified in their entirety bythe cautionary language set forth in the Cautionary Note RegardingForward-Looking Statements in Management's Discussion and Analysis ofFinancial Condition and Results of Operations in the Company's AnnualReport on Form 10-K for the year ended December 31, 2005, and may bemodified in subsequent periodic reports filed by the Company with theSecurities and Exchange Commission that may be accessed on theCompany's website. The Company cautions shareholders and prospectiveinvestors that actual results may differ materially from thoseindicated by the forward-looking statements.

FMC Technologies, Inc. will conduct its second quarter 2006conference call at 9:00 a.m. (Eastern Daylight Time) on Wednesday,July 26, 2006. The event will be available at www.fmctechnologies.com.It also will be available for replay after the event at the samewebsite address.
FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------
(Unaudited and in millions, except per share amounts)


Three Months Ended Six Months Ended
June 30 June 30
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------

Revenue $998.4 $812.5 $1,867.7 $1,494.1

Costs and expenses 901.1 778.0 1,694.7 1,462.9
--------- --------- --------- ---------

97.3 34.5 173.0 31.2

Net (loss) gain on disposal
of assets (0.1) 2.2 0.1 4.9

Minority interests (0.3) (0.3) (1.1) (1.1)
--------- --------- --------- ---------

Income before net interest
expense and income taxes 96.9 36.4 172.0 35.0
Net interest expense (2.3) (1.2) (3.8) (2.4)
--------- --------- --------- ---------

Income before income taxes 94.6 35.2 168.2 32.6

Provision for income taxes 31.0 5.8 57.6 3.2
--------- --------- --------- ---------

Income from continuing
operations 63.6 29.4 110.6 29.4

Income from discontinued
operations, net of tax 1.9 - 1.9 -
--------- --------- --------- ---------

Net income $65.5 $29.4 $112.5 $29.4
========= ========= ========= =========


Basic Earnings per share:
-----------------------------

Income from continuing
operations $0.92 $0.43 $1.61 $0.42
Income from discontinued
operations 0.03 - 0.03 -
--------- --------- --------- ---------
Basic earnings per share $0.95 $0.43 $1.64 $0.42
========= ========= ========= =========

Diluted Earnings per share:
-----------------------------

Income from continuing
operations $0.90 $0.42 $1.57 $0.41
Income from discontinued
operations 0.03 - 0.03 -
--------- --------- --------- ---------
Diluted earnings per share $0.93 $0.42 $1.60 $0.41
========= ========= ========= =========

Weighted average shares
outstanding:
-----------------------------

Basic 68.7 69.0 68.7 69.1
========= ========= ========= =========

Diluted 70.4 70.7 70.4 70.7
========= ========= ========= =========


FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
----------------------------------------------------
BUSINESS SEGMENT DATA
---------------------
(Unaudited and in millions)

Three Months Ended Six Months Ended
June 30 June 30
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Revenue
-------

Energy Production Systems $614.2 $471.4 $1,141.9 $869.2
Energy Processing Systems 158.8 123.3 311.1 233.6
Intercompany eliminations (0.5) (0.5) (0.6) (1.5)
--------- --------- --------- ---------
Subtotal Energy Systems 772.5 594.2 1,452.4 1,101.3
FoodTech 148.1 139.3 271.4 251.2
Airport Systems 79.2 82.0 147.4 146.7
Intercompany eliminations (1.4) (3.0) (3.5) (5.1)
--------- --------- --------- ---------
$998.4 $812.5 $1,867.7 $1,494.1
========= ========= ========= =========

Income before income taxes
--------------------------

Segment operating profit
------------------------
Energy Production Systems $67.4 $19.3 $121.3 $18.1
Energy Processing Systems 26.9 13.6 50.2 20.6
--------- --------- --------- ---------
Subtotal Energy Systems 94.3 32.9 171.5 38.7
FoodTech 15.4 12.3 22.2 15.7
Airport Systems 4.8 4.6 7.3 8.7
--------- --------- --------- ---------
Total segment operating
profit 114.5 49.8 201.0 63.1

Corporate items
---------------
Corporate expense (8.6) (6.7) (15.4) (14.3)
Other expense, net (1) (9.0) (6.7) (13.6) (13.8)
Net interest expense (2.3) (1.2) (3.8) (2.4)
--------- --------- --------- ---------
Total corporate items (19.9) (14.6) (32.8) (30.5)
--------- --------- --------- ---------

Income from continuing
operations before income
taxes $94.6 $35.2 $168.2 $32.6
========= ========= ========= =========

(1) Other expense, net, generally includes stock-based compensation,
other employee benefits, LIFO adjustments, and the impact of
unusual transactions not representative of segment operations.



FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
----------------------------------------------------
BUSINESS SEGMENT DATA
---------------------
(Unaudited and in millions)


Three Months Ended Six Months Ended
June 30 June 30
------------------- -------------------
2006 2005 2005 2005
--------- --------- --------- ---------
Inbound Orders
--------------

Energy Production Systems $698.0 $738.5 $1,380.9 $1,047.1
Energy Processing Systems 182.8 159.4 333.8 288.8
Intercompany eliminations (0.3) (0.4) (0.3) (0.8)
--------- --------- --------- ---------
Subtotal Energy Systems 880.5 897.5 1,714.4 1,335.1
FoodTech 124.9 126.9 282.4 261.4
Airport Systems 123.6 93.1 227.6 149.6
Intercompany eliminations (1.3) (2.1) (2.7) (5.3)
--------- --------- --------- ---------

Total inbound orders $1,127.7 $1,115.4 $2,221.7 $1,740.8
========= ========= ========= =========


June 30
-------------------
2006 2005
--------- ---------
Order Backlog
-------------

Energy Production Systems $1,735.6 $1,400.5
Energy Processing Systems 237.5 160.0
Intercompany eliminations (0.1) (0.2)
--------- ---------
Subtotal Energy Systems 1,973.0 1,560.3
FoodTech 141.1 152.9
Airport Systems 174.0 122.7
Intercompany eliminations (0.6) (2.1)
--------- ---------

Total order backlog $2,287.5 $1,833.8
========= =========




FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
----------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In millions)

June 30, December 31,
2006 2005
(Unaudited)
------------ ------------

Cash and cash equivalents $113.4 $152.9
Trade receivables, net 787.7 736.3
Inventories 557.7 449.4
Other current assets 111.4 89.5
------------ ------------
Total current assets 1,570.2 1,428.1

Property, plant and equipment, net 393.8 353.3
Goodwill 120.6 117.4
Intangible assets, net 61.7 61.1
Investments 22.3 22.3
Other assets 112.7 113.4
------------ ------------
Total assets $2,281.3 $2,095.6
============ ============

Short-term debt and current portion of
long-term debt $4.4 $3.3
Accounts payable, trade and other 378.6 366.2
Advance payments and progress billings 345.7 348.6
Other current liabilities 369.4 340.1
------------ ------------
Total current liabilities 1,098.1 1,058.2

Long-term debt, less current portion 261.3 252.6
Other liabilities 92.2 85.3
Common stock 0.7 0.7
Other stockholders' equity 829.0 698.8
------------ ------------
Total liabilities and stockholders' equity $2,281.3 $2,095.6
============ ============




FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES
----------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited and in millions)

Six Months Ended
June 30
-----------------
2006 2005
-------- --------

Cash provided (required) by operating activities of
continuing operations:
Net income $112.5 $29.4
Income from discontinued operations (1.9) -
Depreciation and amortization 34.2 32.1
Trade accounts receivable, net (31.7) (8.3)
Inventories (99.7) (122.5)
Advance payments and progress billings (8.1) 42.8
Income taxes 15.6 (46.0)
Other (2.6) (13.7)
-------- --------

Net cash provided (required) by operating
activities of continuing operations 18.3 (86.2)
-------- --------

Cash required by operating activities of
discontinued operations (0.8) (0.2)
-------- --------

Cash provided (required) by investing activities:
Capital expenditures (61.2) (28.9)
Other 2.5 8.3
-------- --------

Net cash required by investing activities (58.7) (20.6)
-------- --------


Cash provided (required) by financing activities:
Net increase in debt 9.3 86.5
Issuance of capital stock 18.8 9.9
Purchase of stock held in treasury (40.2) (25.5)
Excess tax benefits 13.5 1.9
Net increase in common stock held in employee
benefit trust (0.7) (0.5)
-------- --------

Net cash provided by financing activities 0.7 72.3
-------- --------

Effect of changes in foreign exchange rates on cash
and cash equivalents 1.0 (4.0)
-------- --------

Decrease in cash and cash equivalents (39.5) (38.7)

Cash and cash equivalents, beginning of period 152.9 124.1
-------- --------

Cash and cash equivalents, end of period $113.4 $85.4
======== ========