FMC Technologies Touts $4.1B in 2010 Revenue

FMC Technologies reported fourth quarter 2010 revenue of $1.1 billion and diluted earnings per share from continuing operations of $0.82. The diluted earnings per share were affected by a combination of tax items that resulted in a net benefit of $0.13 per diluted share.

Total inbound orders of $1.6 billion were up 121 percent from the fourth quarter of 2009 and included $1.1 billion in subsea systems orders, bringing the full year subsea orders to a record total of $4.1 billion. Backlog for the Company reached $4.2 billion including subsea systems backlog of $3.6 billion. Subsea systems recorded its fourth consecutive quarterly backlog increase.

Full Year 2010 Results

Total Company revenue for 2010 was $4.1 billion, and total Company operating profit increased two percent to a record $633.4 million. The full year 2010 diluted earnings per share from continuing operations were $3.06.

"We are pleased to report our eighth consecutive year of earnings growth," said Peter D. Kinnear, Chairman and Chief Executive Officer. "For 2011, we expect global deepwater activity will grow and subsea orders will remain strong. Our estimate for 2011 diluted earnings per share is $3.20 to $3.40."

Review of Operations – Fourth Quarter 2010

Energy Production Systems

Energy Production Systems' fourth quarter revenue was $875.1 million, including subsea systems revenue of $689 million. Surface wellhead revenue was up 11 percent from the third quarter of 2010 and was at the highest level since 2008.

Energy Production Systems' operating profit of $105.5 million decreased 20 percent from the prior-year quarter, primarily due to lower volume in subsea systems.

Energy Production Systems' inbound orders for the fourth quarter were $1.3 billion, including subsea systems orders of $1.1 billion. Subsea systems finished the year with a record total of $4.1 billion in orders. Backlog for Energy Production Systems was $3.9 billion, including $3.6 billion in subsea systems at the end of the fourth quarter.

Energy Processing Systems

Energy Processing Systems' fourth quarter revenue of $222.9 million was 26 percent higher than the prior-year quarter. The increase came mainly from the fluid control business, which had record revenue in the quarter.

Energy Processing Systems had record operating profit of $43.5 million in the fourth quarter, up 111 percent from the prior-year quarter. The increase was mainly driven by higher volume in the fluid control business resulting from strong North American pressure pumping activity.

Energy Processing Systems' inbound orders were a record $255.8 million in the fourth quarter led by strong fluid control and measurement solutions orders. Backlog for the segment finished the quarter at $296.0 million.

Corporate Items

Corporate expense in the fourth quarter was $10.9 million, an increase of $0.7 million from the prior-year quarter. Other expense, net, was $3.0 million, a decrease of $2.4 million from the prior-year quarter.

The Company ended the quarter with net debt of $47.8 million. Net interest expense was $2.3 million in the quarter.

Depreciation and amortization for the fourth quarter was $24.2 million, down $4.1 million from the prior-year quarter. Capital expenditures for the fourth quarter totaled $47.5 million, bringing the full year total to $112.5 million.

The Company recorded an effective tax rate of 24.7 percent for the fourth quarter. Excluding an IRS tax appeal resolution and a combination of other tax events, the effective tax rate would have been 36.3 percent.

Summary and Outlook

FMC Technologies reported fourth quarter diluted earnings per share from continuing operations of $0.82 including a net benefit of $0.13 per diluted share from tax items. The 2010 total Company revenue was $4.1 billion, and total Company operating profit increased two percent to a record $633.4 million.

Total inbound orders of $1.6 billion were up 121 percent from the fourth quarter of 2009 and included $1.1 billion in subsea systems orders, bringing the full year subsea orders to a record total of $4.1 billion. Backlog for the Company reached $4.2 billion including subsea systems backlog of $3.6 billion.

The Company provided guidance for 2011 diluted earnings per share from continuing operations in a range of $3.20 to $3.40.

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