Credit: Shutterstock photoOilfield equipment manufacturer FMC Technologies Inc. FTI reported weak second-quarter 2016 results. A stronger U.S. dollar, record low rig counts in North America along with reduced land activity in the continent was primarily behind the downfall.
The Houston, TX-based company posted adjusted diluted earnings per share of 22 cents, which plummeted almost 58% from the year-earlier adjusted figure of 52 cents. The bottom line also came in below the Zacks Consensus Estimate of 30 cents.
FMC Technologies Inc. (FTI) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany
FMC Technologies reported revenues of $1,150.3 million, down 32% from $1,695.2 million generated in second-quarter 2015. The top line also failed to meet the Zacks Consensus Estimate of $1,260 million.
Segmental Analysis
Subsea Technologies: Revenues were $854.2 million, down 31% from the second quarter of 2015. This was primarily due to the effect of a stronger U.S. dollar.
Operating profit of $97.2 million was lower than the year-ago quarter level of $183.5 million. Lower subsea revenues hampered the results.
Surface Technologies: Revenues fell almost 40% year over year to $218.7 million. A significant decline in North American rig count affected the segment's performance.
So much so that the segment incurred operating loss of $21.7 million against a profit $27.5 million in the year-ago comparable quarter.
Energy Infrastructure: Revenues for the April to June period came in at $85.1 million, 16% lower than second-quarter 2015. This was owing to reduced land activity in North America.
Operating profit for the segment increased to $7.8 million from $5.3 million in the year-earlier quarter.
Backlog
As of Jun 30, 2016, FMC Technologies reported a total backlog (including inter-company eliminations) of $3,386.9 million, significantly below the prior-year quarter level of $5,323.8 million. Out of this, backlog for Subsea Technologies was $2,898.8 million, while Surface Technologies and Energy Infrastructure backlog was $357 million and $133.2 million, respectively.
Balance Sheet
In the reported quarter, FMC Technologies spent $31.7 million on capital programs. As of Jun 30, the company had cash and cash equivalents of $1,075 million, long-term debt of $1,298.7 million, and a debt-to-capitalization ratio of 33.5%.
FMC TECH INC Price, Consensus and EPS Surprise
FMC TECH INC Price, Consensus and EPS Surprise | FMC TECH INC Quote
Zacks Rank & Other Stock Picks
FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Murphy USA Inc. MUSA , NGL Energy Partners LP NGL and North Atlantic Drilling Limited NADL . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
