FMC Technologies reported first quarter 2011 revenue of $1.1 billion and diluted earnings per share from continuing operations of $0.35. The diluted earnings per share included a tax benefit of $0.03 per diluted share.
Total inbound orders of $1.4 billion were up 11 percent from the first quarter of 2010 and included $940 million in subsea systems orders. Backlog for the Company reached $4.6 billion including subsea systems backlog of $3.9 billion. Subsea systems recorded its fifth consecutive quarterly backlog increase.
"The outlook for the subsea market in general, and our subsea business in particular, is strong," said John Gremp, President and Chief Executive Officer. "We are also encouraged by the continued strength of the North American land activity and its impact on our fluid control and surface wellhead businesses. We are reiterating our estimate for 2011 diluted split-adjusted earnings per share of $1.60 to $1.70."
Review of Operations – First Quarter 2011
Energy Production Systems
Energy Production Systems' first quarter revenue was $856.4 million, including subsea systems revenue of $683 million. Surface wellhead revenue was up 5 percent from the first quarter of 2010 with stronger North American activity partially offset by weakness in some of our international markets.
Energy Production Systems' operating profit of $82.2 million decreased 48 percent from the prior-year quarter, due to expected lower margins in subsea systems combined with increased costs in surface wellhead.
Energy Production Systems' inbound orders for the first quarter were $1.1 billion, including subsea systems orders of $940 million. Backlog for Energy Production Systems was $4.2 billion, including $3.9 billion in subsea systems at the end of the first quarter.
Energy Processing Systems
Energy Processing Systems' first quarter revenue of $226.1 million was 35 percent higher than the prior-year quarter. The increase came mainly from fluid control, with record revenue in the quarter.
Energy Processing Systems had record operating profit of $43.7 million in the first quarter, up 86 percent from the prior-year quarter. The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.
Energy Processing Systems' inbound orders were a record $267.1 million in the first quarter led by strong orders in fluid control. Backlog for the segment finished the quarter at $342.1 million.
Corporate expense in the first quarter was $8.4 million, a decrease of $0.6 million from the prior-year quarter. Other expense, net, was $8.2 million, a decrease of $12.6 million from the prior-year quarter.
The Company ended the quarter with net debt of $45.2 million. Net interest expense was $1.5 million in the quarter.
Depreciation and amortization for the first quarter was $25.4 million, down $3.2 million from the prior-year quarter. Capital expenditures for the first quarter totaled $41.0 million.
The Company's effective tax rate was 20.9 percent for the first quarter and included a $7.3 million credit for a foreign tax holiday.
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