Foster Wheeler AG today reported net income for the third quarter of 2011 of $36.9 million, or $0.31 per diluted share, compared with $51.7 million, or $0.41 per diluted share, in the third quarter of 2010.
Net income in both quarterly periods was impacted by asbestos-related gains and provisions. Excluding such items from both quarterly periods, net income in the third quarter of 2011 was $38.8 million, or $0.33 per diluted share, compared with $50.1 million, or $0.40 per diluted share, in the year-ago quarter.
For the first nine months of 2011, net income was $123.1 million, or $1.01 per diluted share, compared with $182.6 million, or $1.44 per diluted share, for the first nine months of 2010.
Foster Wheeler’s Chief Executive Officer, Kent Masters , said, “ Net income for the third quarter of 2011 was down relative to the average quarter of 2010, primarily due to lower EBITDA margins in the company’s two business groups. Even so, both groups delivered strong revenues and continued good operating performance. In particular, the company reported the highest level of consolidated scope revenues since the fourth quarter of 2009 .”
In commenting on the outlook for the company’s two business groups, Masters said, “ In our Global E&C Group, we are maintaining full-year 2011 EBITDA margin guidance of 13%-15%. We expect to see a continuation of the trend of sequential-quarter increases in scope revenues, but we believe full-year scope revenues will be slightly below full-year 2010. Based on slippage in the timing of expected new awards, we now believe scope backlog at year-end 2011 will be below year-end 2010. ”
Masters continued, “ We are maintaining our full-year 2011 EBITDA margin guidance of 17% to 19% for the Global Power Group. GPG remains on track to report full-year scope revenues that are materially higher than 2010, and we now believe that the Group will end the year with an increase in scope backlog versus year-end 2010 .”
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Source: Foster Wheeler, November 2, 2011