FMC Technologies reported second quarter 2011 revenue of $1.2 billion, up 21 percent from the prior-year quarter. Diluted earnings per share were $0.39, equal to the prior-year quarter.
Total inbound orders of $1.5 billion were up 18 percent from the second quarter of 2010 and included $939 million in subsea systems orders. Backlog for the Company reached a record $5.0 billion including record subsea systems backlog of $4.2 billion. Subsea systems recorded its sixth consecutive quarterly backlog increase.
“We have booked almost $1.9 billion in subsea orders during the first half of 2011, and continue to believe $4.0 billion in orders for the year is possible,” said John Gremp, President and Chief Executive Officer. “Our subsea revenue of nearly $800 million during the second quarter has kept us on track to reach $3.3 billion revenue for the year. Our fluid control business is continuing to produce at record levels and as our capacity expansion comes online, we will be able to meet our customers’ growing demands.”
Review of Operations – Second Quarter
Energy Production Systems
Energy Production Systems’ second quarter revenue was $967.6 million, including subsea systems revenue of $795 million. Surface wellhead revenue was up 13 percent from the second quarter of 2010 with stronger North American activity partially offset by market timing and execution issues in our international operations.
Energy Production Systems’ operating profit of $97.3 million decreased 25 percent from the prior-year quarter, due to lower margins in subsea systems combined with increased costs and less favorable mix in surface wellhead.
Energy Production Systems’ inbound orders for the second quarter were $1.2 billion, including subsea systems orders of $939 million. Backlog for Energy Production Systems was $4.5 billion, including $4.2 billion in subsea systems at the end of the second quarter.
Energy Processing Systems
Energy Processing Systems’ second quarter revenue of $262.9 million was 37 percent higher than the prior-year quarter. The increase came mainly from fluid control, with record revenue in the quarter.
Energy Processing Systems had record operating profit of $53.9 million in the second quarter, up 62 percent from the prior-year quarter. The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.
Energy Processing Systems’ inbound orders were a record $339.8 million in the second quarter led by strong orders in fluid control. Backlog for the segment finished the quarter at $421.3 million.
Corporate Items
Corporate expense in the second quarter was $10.6 million, an increase of $0.5 million from the prior-year quarter. Other expense, net, was $2.0 million, a decrease of $7.9 million from the prior-year quarter due largely to $4.0 million in foreign exchange gains in 2011 compared to a $2.7 million loss in 2010.
The Company ended the quarter with net debt of $44.8 million. Net interest expense was $2.1 million in the quarter.
The Company repurchased 149,000 shares of common stock in the quarter, at an average cost of $40.87 per share.
Depreciation and amortization for the second quarter was $26.3 million, up $0.9 million from the previous quarter. Capital expenditures for the second quarter totaled $61.8 million.
The Company recorded an effective tax rate of 30.9 percent for the second quarter.
