Offshore oilfield equipment manufacturer,
) reported fourth-quarter adjusted diluted earnings per share of
57 cents, in line with the Zacks Consensus Estimate of 57 cents
and better than the year-ago period profit of 41 cents. The
results were aided by Surface Technologies' international surface
wellhead business and strong performance in the international
Revenues at $1,840.9 million were up 22.7% year over year and
also above the Zacks Consensus Estimate of $1,720.0 million.
: The segment revenue for the most recent quarter was $1,235.5
million, up 28.2% from the fourth quarter of 2011 buoyed by a
rise in the sales of subsea systems.
Operating profit came in at $151.2 million, up 116.6% year over
year. The positive comparison reflects higher volumes and an
: Segment revenues were up 18.7% year over year at $443.7
million. The main reasons for the improved performance are volume
growth in the surface wellhead business and revenues from the
acquisition of Pure Energy Services Ltd. - the leading provider
of frac flowback services.
But segment operating profit of $64.6 million decreased 15.4%
from the year-ago period, hamstrung by condensed fluid control
and surface wellhead activity in North America.
: The segment revenue for the October-December period was $166.6
million, 10.3% above the fourth-quarter 2011 level.
Operating profit increased to $22.8 million from $20.2 million
earned in the year-ago quarter, owing to better project
As of Dec 31, 2012, FMC's total backlog (including intercompany
eliminations) was $5,377.8 million compared with $4,876.4 million
a year ago. Of this, backlog for Subsea Technologies was $4,580.1
million, while Surface Technologies and Energy Infrastructure
backlog finished the quarter at $500.8 million and $298.0
During the quarter, FMC spent $122.9 million on capital programs.
As of Dec 31, 2012, the company had cash and cash equivalents of
$342.1 million and debt of $1,640.8 million, with a
debt-to-capitalization ratio of 47.2%.
Management estimated its 2013 earnings per share in the range of
$2.05-$2.25, on the back of rising Subsea Technologies revenue
and margins and continuous solid performance in international
FMC Technologies operates manufacturing facilities in 15
countries outside the U.S., and approximately three-fourths of
its sales are generated internationally. The company's operating
areas include economically and politically volatile regions such
as North Africa, West Africa, the Middle East, Latin America and
Asia Pacific. Instability and unforeseen changes in these markets
may have an adverse impact on its operations and earnings.
Additionally, oilfield service stocks are extremely volatile and
the correlation of their movement with underlying business
fundamentals is sometimes difficult to establish. As such, the
shares of FMC Technologies may not be suitable for investors who
are not comfortable with day-to-day volatility.
The company currently retains a Zacks Rank #4 (Sell), implying
that it is expected to underperform the broader U.S. equity
market over the next one to three months.
However, some other companies in the energy sector are
expected to perform well in the coming one to three months. These
Cenovus Energy Inc
) with a Zacks Rank #1 (Strong Buy) as well as
) with a Zacks Rank #2 (Buy).
CENOVUS ENERGY (CVE): Free Stock Analysis
FMC TECH INC (FTI): Free Stock Analysis
MCDERMOTT INTL (MDR): Free Stock Analysis
(TKPPY): ETF Research Reports
To read this article on Zacks.com click here.