Foster Wheeler AG today reported net income for the fourth quarter of 2010 of $32.8 million, or $0.26 per diluted share, compared with $65.1 million, or $0.51 per diluted share, in the fourth quarter of 2009.
Net income in both quarterly periods was impacted by items as detailed in the attached table. Excluding such items from both quarterly periods, net income in the fourth quarter of 2010 was $38.3 million, or $0.31 per diluted share, compared with $86.2 million, or $0.67 per diluted share, in the year-ago quarter.
Fourth-quarter 2010 consolidated EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was $71.0 million, compared with $108.1 million in the fourth quarter of 2009. Consolidated EBITDA in both quarterly periods was also impacted by items as detailed in the attached table. Excluding such items from both quarterly periods, consolidated EBITDA in the fourth quarter of 2010 was $76.5 million, compared with $129.2 million in the fourth quarter of 2009.
For the full year 2010, net income was $215.4 million, or $1.70 per diluted share, compared with $350.2 million, or $2.75 per diluted share, in 2009. Consolidated EBITDA for 2010 was $359.7 million, compared with $503.8 million in 2009. The full-year net income and consolidated EBITDA for 2010 and 2009 included items as detailed in the attached table.
In commenting on the company’s results for the fourth quarter of 2010, Foster Wheeler’s Interim Chief Executive Officer, Umberto della Sala, said, “Both of the company’s business groups continued to deliver excellent operating and commercial performance. However, the company’s adjusted net income was below the average quarter of 2009 due in part to lower volumes and margins in the Global Engineering and Construction Group and a higher effective tax rate.” The higher effective tax rate for the quarter resulted, to some extent, from certain expenses which are not tax-effected.
“We ended 2010 on a very strong note, with robust levels of scope backlog and fourth-quarter scope new orders in both business groups,” said Mr. della Sala. “Specifically, our Global Power Group reported fourth-quarter scope backlog and scope new orders that were nearly double the levels of the same period of 2009. The backlog figure for our E&C Group is especially impressive, considering the challenging market conditions experienced in 2010 and the fact that the company removed from backlog $123 million of scope value and a material number of man-hours in the fourth quarter of 2010 in connection with a contract where Foster Wheeler and the client agreed to change the execution strategy for the project.”
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Source: Foster Wheeler, February 24, 2011;