FMC Technologies Expects 4Q05 Earnings to Exceed Guidance
FMC Technologies (NYSE: FTI) says that due to strong fourth quarter performance it now expects to exceed the GAAP earnings per diluted share estimate of $0.07 to $0.17, which included a $0.36 charge for taxes required from repatriation of foreign earnings. Excluding that charge, the company had previously indicated that results would be in the range of $0.43 to $0.53 for the quarter. The Company now expects results, excluding the tax charge and excluding a gain on the sale of an investment, to exceed that previous guidance.
The Company also announced that its Floating Systems subsidiary is nearing completion of an offshore oil loading project in Algeria for Sonatrach-TRC, the Algerian Oil and Gas Company. The Company has received customer acceptance from Sonatrach-TRC of the Bejaia site and ownership of the site has been transferred to Sonatrach. At the Arzew site, the tanker loadings and other tests have been completed, and the Company has applied for final customer acceptance. At Skikda, the final site, the customer acceptance testing is in progress.
"We are pleased with the recent progress we are making on the Sonatrach project and believe we are nearing final completion of the project scope," said Joseph H. Netherland, Chairman, President and Chief Executive Officer. Sonatrach and FMC Technologies continue, however, to negotiate various claims concerning delays and work stoppages. These negotiations could continue after the physical completion of the contract.
As forecast for the fourth quarter of 2005, the Company repatriated $473 million of foreign earnings under the American Jobs Creation Act. This repatriation required a tax charge of $25.5 million or $0.36 per diluted share in the fourth quarter.
Also in the fourth quarter, FMC Technologies sold its 60 percent ownership interest in GTL Microsystems, a joint venture between FMC Technologies and Accentus plc engaged in the development of Gas to Liquids technology. The after-tax gain of $7.4 million or $0.10 per diluted share will be recorded in the fourth quarter 2005 results.
FMC Technologies fourth quarter and full-year 2005 earnings will
be released at close of business on February 14, 2006.
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