Oilfield equipment manufacturer
FMC Technologies, Inc.
) reported robust second-quarter results, thereby continuing the
trend from the past two quarters, based on improvement in its
Subsea Technologies and Surface Technologies business segments.
The Houston, TX-based company posted second-quarter 2014
adjusted diluted earnings per share of 72 cents, up 50.0% from the
year-earlier quarter adjusted figure of 48 cents. The reported
figure also comfortably surpassed the Zacks Consensus Estimate of
FMC Technologies, Inc - Earnings Surprise |
FMC Technologies reported revenues of $1,985.3 million, compared
with $1,707.9 million in second quarter 2013.
The segment revenues were $1,328.6 million, up around 18.2% from
the second quarter of 2013.
Operating profit of $193.7 million jumped 61.1% year over year
as the company improved execution of its robust backlog.
Segment revenues rose 16.1% year over year to $510.9 million.
Segment operating profit of $79.2 million increased 38.2% from
the year-ago period. The favorable comparison reflects higher
volumes from the international surface wellhead business and the
North American fluid control business.
The segment revenues for the April-June period were $149.2 million,
5.5% lower than the second-quarter 2013 level.
Operating profit decreased to $18.2 million from $21.7 million
earned in the year-ago quarter. The decline in profit was due to
lower revenues as a result of the sale of its Material Handling
Products business. However, this was partly offset by better
results from the company's loading systems and separation systems
As of Jun 30, 2014, FMC Technologies reported total backlog
(including intercompany eliminations) of $7,335.4 million,
substantially higher than the prior-year quarter level of $6,720.3
million. Out of this, backlog for Subsea Technologies was $6,337.3
million, while Surface Technologies and Energy Infrastructure
backlog exited the quarter with $779.2 million and $241.6 million,
In the reported quarter, FMC Technologies spent $180.0 million
on capital programs. As of Jun 30, the company had cash and cash
equivalents of $382.2 million and debt of $1,309.8 million, with a
debt-to-capitalization ratio of 33.2%.
Management raised its 2014 diluted earnings per share guidance
to $2.70-$2.80 on the back of strong results from the Surface
Technologies segment and a positive outlook of the North American
Zacks Rank & Other Stock Picks
FMC Technologies is a leading manufacturer and supplier of
technology solutions for the energy industry. The company currently
has a Zacks Rank #3 (Hold).
Meanwhile, one can consider better-ranked players from the
oilfield machinery and equipment industry such as
Cameron International Corporation
Superior Energy Services, Inc.
). All these stocks sport a Zacks Rank #2 (Buy).
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