Second Quarter Profits Up 42% for FMC Technologies
FMC Technologies, Inc. reported second quarter 2002 sales of $542.3 million and net income of $0.27 per diluted share, up 42 percent from $0.19 per share on a pro forma diluted basis, before non-recurring items, in the same period last year.
"Second quarter 2002 results reflected strength in all our businesses," said Joseph H. Netherland, Chairman, President and Chief Executive Officer. "Energy Systems' sales and operating earnings increased 23 and 37 percent, respectively, compared to the second quarter a year ago. FoodTech sales and operating earnings increased 15 and 50 percent, respectively, also compared to a year ago. Due to aggressive cost reduction efforts, our Airport Systems business reported a profit of $3.3 million in extremely adverse market conditions. These results and the continued strength in our subsea business give us increased confidence in our forecast earnings of approximately $0.95 per share on a diluted basis, before the cumulative effect of a change in accounting principle, for the full year 2002 -- a 16 percent increase from last year's pro forma results."
Sales for Energy Systems (comprising Energy Production Systems and Energy Processing Systems) were $330.7 million in the second quarter of 2002, up 23 percent from $269.8 million in the second quarter of 2001. Earnings were $18.2 million, up 37 percent from $13.3 million in the same period last year. Strong performance in the quarter resulted from higher sales in Energy Production Systems, in which year-over-year second quarter sales and profits were up 32 percent and 34 percent, respectively. Subsea systems' performance was particularly strong, driven by higher sales in major offshore oil and gas producing basins. Energy Processing Systems' second quarter sales were up 6 percent year-over-year and profits increased 42 percent. Profit improvements primarily in measurement systems and loading systems, as well as lower amortization expense resulting from the implementation of Statement of Financial Accounting Standards No. 142 (SFAS 142), more than offset weakness in the WECO(R)/Chiksan(R) fittings business. Energy Systems' inbound orders remained strong at $338.2 million for the quarter. Energy Systems' total backlog at the end of the second quarter was $781.1 million, an increase of over $105 million from year-end 2001 and over $145 million from the second quarter of 2001.