Offshore oilfield equipment manufacturer,
FMC Technologies, Inc
) reported stellar fourth quarter results. Improvement in all the
segments contributed to the outperformance, with focus on the
Subsea technologies segment that reported record quarterly
The Houston, Texas-based company reported adjusted diluted
earnings per share of 79 cents, easily beating the Zacks
Consensus Estimate of 65 cents and improving from the year-ago
quarter level of 57 cents.
Revenues at $2,047.8 million were up 11.2% year over year and
also above the Zacks Consensus Estimate of $1,892.0 million.
For 2013, FMC Tech reported diluted per share profits of $2.10,
up about 18.0% from the 2012 level and ahead of the Zacks
Consensus Estimate of $2.08. Revenues of $7,126.2 million
increased 15.9% from the prior-year figure and also beat the
Zacks Consensus Estimate of $6,974.0 million.
The segment revenues for the reported quarter were $1,390.0
million, up 12.6% from the fourth quarter of 2012.
Operating profit of $209.5 million jumped 43.7% year over year.
The positive comparison reflects higher volumes and an improved
Segment revenues were up 10.2% year over year at $489.0 million.
The primary reason for the improved performance was volume growth
in the international surface wellhead business.
Segment operating profit of $68.1 million increased 5.4% from the
The segment revenue for the October-December period was $172.6
million, about 3.0% above the fourth-quarter 2012 level.
However, operating profit decreased to $22.6 million from $28.2
million earned in the year-ago quarter.
As of Dec 31, 2013, FMC Tech's total backlog (including
intercompany eliminations) was $6,998.2 million compared with
$5,377.8 million a year ago. Of this, backlog for Subsea
Technologies was $5,988.8 million, while Surface Technologies and
Energy Infrastructure backlog finished the quarter at $742.4
million and $288.4 million, respectively.
DRIL-QUIP INC (DRQ): Free Stock Analysis
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During the reported quarter, FMC Tech spent $76.6 million on
capital programs. As of Dec 31, 2013, FMC Tech had cash and cash
equivalents of $399.1 million and debt of $1,372.3 million, with
a debt-to-capitalization ratio of 37.2%.
Management estimated its 2014 diluted earnings per share in the
range of $2.55-$2.75, amid projections of rising revenues and
margins improvement in Subsea Technologies and strong performance
from Surface Technologies' international markets.
FMC Tech is a leading manufacturer and supplier of technology
solutions for the energy industry. The company currently holds a
Zacks Rank #4 (Sell).
Meanwhile one can consider better-ranked players from the same
industry such as
Matrix Service Company
Profire Energy, Inc.
). While Matrix Service and Profire Energy currently sport a
Zacks Rank #1 (Strong Buy), Dril-Quip holds a Zacks Rank #2