Foster Wheeler AG today reported net income for the first quarter of 2011 of $23.0 million, or $0.18 per diluted share, compared with $72.1 million, or $0.56 per diluted share, in the first quarter of 2010.
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 first quarter of 2011 was $23.4 million, or $0.19 per diluted share, compared with $71.3 million, or $0.56 per diluted share, in the year-ago quarter.
In commenting on the company’s results for the first quarter of 2011, Foster Wheeler’s Interim Chief Executive Officer, Umberto della Sala , said, “ Both of our business groups have continued to operate very well. However, relative to the average quarter of 2010, our net income in the first quarter of 2011 declined, as both business groups reported lower realized EBITDA margins, reflecting the as-booked margins on contracts that were awarded over the course of 2009 and 2010. Also contributing to the decline in net income relative to the average quarter of 2010 were lower volumes in our Global E&C Group and materially lower levels of profit enhancement opportunities in both groups. ”
Mr. della Sala said, “ Our financial results for the first quarter of 2011 were broadly in line with our expectations, and we anticipate marked improvement in the remaining quarters of this year .”
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Source: Foster Wheeler, May 3, 2011;