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FMC Technologies Reports Fourth Quarter 2009 Diluted Earnings Per Share of $0.75
Feb 16, 2010 (03:02 PM EST)


Highlights:

-- Record subsea systems revenue of $822 million

-- Energy Production Systems operating profit up 10 percent

-- Full year 2009 company operating profit a record $619 million

-- Company provides 2010 guidance for diluted earnings per share of $2.45 to $2.65

HOUSTON, Feb. 16 /PRNewswire-FirstCall/ -- FMC Technologies, Inc. (NYSE: FTI) today reported fourth quarter 2009 revenue from continuing operations of $1.2 billion, including a record $822 million in subsea systems.  Diluted earnings per share from continuing operations were $0.75 compared to $0.74 in the prior-year quarter.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081222/LAM028LOGO)

Led by higher operating margin and volume in subsea systems, fourth quarter operating profit in Energy Production Systems increased 10 percent from the fourth quarter of 2008.  Operating profit in Energy Processing Systems was down 49 percent from the prior-year quarter due mainly to continued market weakness in the fluid control business.

Full Year 2009 Results

The 2009 total company revenue of $4.4 billion was led by subsea systems, whose revenue increased three percent to a record $3.1 billion.  Total company operating profit increased six percent to a record $618.5 million.  The full year 2009 diluted earnings per share from continuing operations of $2.87 were up six percent from the 2008 diluted earnings per share of $2.72.

"As a result of a healthy backlog and strong execution, we are pleased to report another year of earnings growth," said Peter D. Kinnear, Chairman, President and Chief Executive Officer.  "While we anticipate 2010 revenue to be slightly lower than 2009, we expect a significant rebound in orders and a rebuilding of our backlog.  Our estimate for 2010 diluted earnings per share is $2.45 to $2.65."

Review of Operations – Fourth Quarter 2009

Energy Production Systems

Energy Production Systems' record fourth quarter revenue of $988.8 million increased $16.0 million from the prior-year quarter.  Revenue for subsea systems was a record $822 million, up four percent from the prior-year quarter.  Surface wellhead revenue was down six percent from the fourth quarter of 2008 but was up five percent compared to the third quarter of 2009.

Energy Production Systems' operating profit of $131.2 million increased 10 percent over the prior-year quarter.  The increase in operating profit was due to higher operating margins across the segment and increased volume in subsea systems.

Energy Production Systems' inbound orders for the fourth quarter were $584.5 million, including subsea systems orders of $411 million.  Backlog for Energy Production Systems was $2.3 billion, including $2.0 billion in subsea systems at the end of the fourth quarter.

Energy Processing Systems

Energy Processing Systems' fourth quarter revenue of $177.1 million was 23 percent lower than the prior-year quarter but was up seven percent from the third quarter of 2009.  The sequential revenue increase came primarily from the measurement solutions business.

Energy Processing Systems' fourth quarter operating profit of $20.6 million was down 49 percent from the prior-year quarter, primarily driven by lower volume and operating margin in the fluid control business resulting from weakness in the North American market.

Energy Processing Systems' inbound orders were $171.6 million for the fourth quarter, which was up 22 percent sequentially driven in part by the fluid control business and was at the highest level since the third quarter of 2008.  Backlog for the segment finished the quarter at $221.1 million.

Corporate Items

Corporate expense in the fourth quarter was $10.2 million, an increase of $1.1 million from the prior-year quarter.

Other expense, net, was $5.4 million, a decrease of $16.4 million from the prior-year quarter.  The decrease from the prior-year quarter included $7.0 million in lower LIFO charges, a reduction of $5.3 million in net foreign exchange losses, and a reduction of $4.7 million in pension expenses.

The company ended the quarter with net cash of $40.6 million.  Net interest expense was $3.0 million in the quarter.

The company repurchased 376 thousand shares of common stock in the quarter for $21.5 million and now has 5.4 million shares remaining in its stock repurchase authorization.

Depreciation and amortization for the fourth quarter was $28.3 million, up $3.7 million from the previous quarter, and capital expenditures totaled $34.0 million.

The company recorded an effective tax rate of 30.3 percent for the fourth quarter.

Summary and Outlook

FMC Technologies reported diluted earnings per share from continuing operations of $0.75, which was an increase from $0.74 in the prior-year quarter.  Fourth quarter revenue from continuing operations was $1.2 billion, including a record $822 million in subsea systems.

Energy Production Systems' operating profit was up 10 percent over the fourth quarter of 2008.  Total company operating profit for the full year 2009 increased six percent to a record $618.5 million.

The company provided guidance for 2010 diluted earnings per share from continuing operations in a range of $2.45 to $2.65.

FMC Technologies, Inc. (NYSE: FTI) is a leading global provider of technology solutions for the energy industry. The Company has approximately 10,400 employees and operates 19 manufacturing facilities in 14 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. For more information, visit www.fmctechnologies.com.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control.  These risks and uncertainties are described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and may be modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website.  The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.

FMC Technologies, Inc. will conduct its fourth quarter 2009 conference call at 9:00 a.m. EST on Wednesday, February 17, 2010.  The event will be available at www.fmctechnologies.com.  An archived audio replay will also be available after the event at the same website address.  In the event of a disruption of service or technical difficulty during the call, information will be posted at www.fmctechnologies.com/earnings.

    
    
              FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES          
              ----------------------------------------------------          
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME              
                   -------------------------------------------              
              (Unaudited and in millions, except per share amounts)         
                                                                            
                                                                            
                                     Three Months Ended  Twelve Months Ended 
                                         December 31         December 31    
                                         -----------         -----------    
                                       2009      2008      2009      2008 
                                       ----      ----      ----      ---- 
                                                                            
    Revenue                          $1,160.2  $1,205.1  $4,405.4  $4,550.9 
    Costs and expenses                1,023.8   1,064.7   3,875.3   4,020.1 
                                      -------   -------   -------   ------- 
                                        136.4     140.4     530.1     530.8 
                                                                            
    Other expense, net                   (0.3)    (11.5)     (2.7)    (23.0)
                                         ----     -----      ----     ----- 
                                                                            
    Income before net interest                                              
     expense and income taxes           136.1     128.9     527.4     507.8 
                                                                            
    Net interest expense                 (3.0)     (0.7)     (9.5)     (1.5)
                                         ----      ----      ----      ---- 
                                                                            
    Income from continuing                                                  
     operations before income taxes     133.1     128.2     517.9     506.3 
                                                                            
    Provision for income taxes           40.3      34.3     155.1     152.0 
                                         ----      ----     -----     ----- 
                                                                            
    Income from continuing                                                  
     operations                          92.8      93.9     362.8     354.3 
                                                                            
    Income (loss) from discontinued                                         
     operations, net of income taxes      0.3      (2.6)      0.5       8.4 
                                          ---      ----       ---       --- 
                                                                            
    Net Income                           93.1      91.3     363.3     362.7 
                                                                            
    Less: net income attributable                                           
     to noncontrolling interests          0.1         -      (1.5)     (1.4)
                                                                            
                                        -----     -----    ------    ------ 
    Net income attributable to FMC                                          
     Technologies, Inc.                 $93.2     $91.3    $361.8    $361.3 
                                        =====     =====    ======    ====== 
                                                                            
    Basic Earnings per share                                                
     attributable to FMC
     Technologies, Inc.:                                
      Income from continuing                                                
       operations                       $0.75     $0.75     $2.91     $2.76 
      Income (loss)  from                                                   
       discontinued operations           0.01     (0.02)        -      0.07 
                                         ----     -----       ---      ---- 
      Basic earnings per share          $0.76     $0.73     $2.91     $2.83 
                                        =====     =====     =====     ===== 
                                                                            
    Basic weighted average shares                                           
     outstanding                        123.1     125.5     124.3     127.8 
                                        =====     =====     =====     ===== 
                                                                            
    Diluted earnings per share                                              
     attributable to
     FMC Technologies, Inc.:                                
      Income from continuing                                                
       operations                       $0.75     $0.74     $2.87     $2.72 
      Income (loss)  from                                                   
       discontinued operations              -     (0.02)     0.01      0.06 
                                          ---     -----      ----      ---- 
      Diluted earnings per share        $0.75     $0.72     $2.88     $2.78 
                                        =====     =====     =====     ===== 
                                                                            
    Diluted weighted average shares                                         
     outstanding                        124.6     127.5     125.7     129.7 
                                        =====     =====     =====     ===== 
                                                                            
    Net income attributable to                                              
     FMC Technologies, Inc.:                                                
      Income from continuing                                                
       operations                       $92.9     $93.9    $361.3    $352.9 
      Income (loss)  from                                                   
       discontinued operations            0.3      (2.6)      0.5       8.4 
                                          ---      ----       ---       --- 
      Net income attributable to FMC                                        
       Technologies, Inc.               $93.2     $91.3    $361.8    $361.3 
                                        =====     =====    ======    ====== 
    
    
    
            FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES        
            ----------------------------------------------------        
                            BUSINESS SEGMENT DATA                       
                            ---------------------                       
                         (Unaudited and in millions)                    
                                                                        
                                 Three Months Ended  Twelve Months Ended 
                                     December 31         December 31    
                                     -----------         -----------    
                                   2009      2008      2009      2008 
                                   ----      ----      ----      ---- 
    Revenue                                                             
    -------                                                             
                                                                        
    Energy Production Systems      $988.8    $972.8  $3,721.9  $3,670.7 
    Energy Processing Systems       177.1     229.6     698.4     883.2 
    Other revenue (1) and                                               
     intercompany eliminations       (5.7)      2.7     (14.9)     (3.0)
                                     ----       ---     -----      ---- 
                                 $1,160.2  $1,205.1  $4,405.4  $4,550.9 
                                 ========  ========  ========  ======== 
                                                                        
    Income before income taxes                                          
    --------------------------                                          
                                                                        
    Segment operating profit                                            
    ------------------------                                            
    Energy Production Systems      $131.2    $119.1    $516.1    $420.7 
    Energy Processing Systems        20.6      40.7     102.4     165.5 
                                     ----      ----     -----     ----- 
    Total segment operating                                             
     profit                         151.8     159.8     618.5     586.2 
                                                                        
    Corporate items                                                     
    ---------------                                                     
    Corporate expense               (10.2)     (9.1)    (35.4)    (37.5)
    Other revenue and other                                             
     expense, net (1)                (5.4)    (21.8)    (57.2)    (42.3)
    Net interest expense             (3.0)     (0.7)     (9.5)     (1.5)
                                     ----      ----      ----      ---- 
    Total corporate items           (18.6)    (31.6)   (102.1)    (81.3)
                                    -----     -----    ------     ----- 
                                                                        
    Income from continuing
     operations before income taxes               
    attributable to FMC                                                 
     Technologies, Inc.            $133.2    $128.2    $516.4    $504.9 
                                   ======    ======    ======    ====== 
                                                                        
                                                                        
                                                                        
    (1) Other revenue comprises certain unrealized gains and losses on 
        derivative instruments related to unexecuted sales contracts.  Other 
        expense, net, generally includes stock-based compensation, other 
        employee benefits, LIFO adjustments, certain foreign exchange gains 
        and losses, and the impact of unusual or strategic transactions not 
        representative of segment operations. 
    
    
    
            FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES        
            ----------------------------------------------------        
                            BUSINESS SEGMENT DATA                       
                            ---------------------                       
                         (Unaudited and in millions)                    
                                                                        
                                 Three Months Ended  Twelve Months Ended 
                                     December 31         December 31    
                                     -----------         -----------    
                                   2009      2008      2009      2008 
                                   ----      ----      ----      ---- 
    Inbound Orders                                                      
    --------------                                                      
                                                                        
    Energy Production Systems      $584.5    $401.5  $2,709.4  $2,853.2 
    Energy Processing Systems       171.6     167.4     606.4     865.9 
                                    -----     -----     -----     ----- 
         Subtotal Energy Systems    756.1     568.9   3,315.8   3,719.1 
    Intercompany eliminations        (9.9)     (3.2)    (16.9)     (7.6)
                                     ----      ----     -----      ---- 
                                                                        
    Total inbound orders           $746.2    $565.7  $3,298.9  $3,711.5 
                                   ======    ======  ========  ======== 
                                                                        
                                                                        
                                                                        
                                     December 31                        
                                     -----------                        
                                   2009      2008                     
                                   ----      ----                     
    Order Backlog                                                       
    -------------                                                       
                                                                        
    Energy Production Systems    $2,332.6  $3,345.0                     
    Energy Processing Systems       221.1     313.2                     
                                    -----     -----                     
         Subtotal Energy Systems  2,553.7   3,658.2                     
    Intercompany eliminations        (8.3)     (7.0)                    
                                     ----      ----                     
                                                                        
    Total order backlog          $2,545.4  $3,651.2                     
                                 ========  ========                     
    
    
    
            FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES        
            ----------------------------------------------------        
                    CONDENSED CONSOLIDATED BALANCE SHEETS               
                    -------------------------------------               
                                (In millions)                           
                                                                        
                                                                        
                                                  December 31, December 31,
                                                     2009         2008
                                                  (Unaudited)             
                                                  -----------             
                                                                        
    Cash and cash equivalents                        $460.7       $340.1
    Trade receivables, net                            879.2        996.1
    Inventories                                       591.8        559.3
    Other current assets                              293.9        542.8
                                                      -----        -----
         Total current assets                       2,225.6      2,438.3
                                                                        
    Property, plant and equipment, net                581.9        494.9
    Goodwill                                          272.7        128.7
    Intangible assets, net                            154.6         70.2
    Investments                                       141.8        151.2
    Other assets                                      132.9        297.6
                                                      -----        -----
    Total assets                                   $3,509.5     $3,580.9
                                                   ========     ========
                                                                        
    Short-term debt and current portion of                              
     long-term debt                                   $28.5        $23.0
    Accounts payable, trade                           343.9        439.8
    Advance payments and progress billings            670.4        770.3
    Other current liabilities                         634.6        726.7
    Liabilities of discontinued operations              1.1          3.5
                                                        ---          ---
         Total current liabilities                  1,678.5      1,963.3
                                                                        
    Long-term debt, less current portion              391.6        472.0
    Other liabilities                                 327.6        446.9
    Common stock                                        1.4          1.4
    Other FMC Technologies, Inc.                                        
     stockholders' equity                           1,101.4        689.0
    Noncontrolling interest in consolidated                             
     companies                                          9.0          8.3
                                                        ---          ---
    Total liabilities and equity                   $3,509.5     $3,580.9
                                                   ========     ========
    
    
    
             FMC TECHNOLOGIES, INC. AND CONSOLIDATED SUBSIDIARIES         
             ----------------------------------------------------         
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS           
                -----------------------------------------------           
                          (Unaudited and in millions)                     
                                                                          
                                                            Twelve Months 
                                                                Ended     
                                                             December 31  
                                                             -----------  
                                                             2009    2008 
                                                             ----    ---- 
                                                                          
    Cash provided (required) by operating
     activities of continuing operations:                                   
         Income from continuing operations                 $361.3  $352.9 
         Depreciation and amortization                       93.0    72.6 
         Trade accounts receivable, net                     211.3  (322.7)
         Inventories                                          7.5   (77.1)
         Accounts payable, trade                           (142.8)  140.9 
         Advance payments and progress billings            (182.4)  207.6 
         Other                                              248.7  (112.5)
                                                            -----  ------ 
                                                                          
    Net cash provided by operating activities of                          
     continuing operations                                  596.6   261.7 
                                                            -----   ----- 
                                                                          
    Cash required by operating activities of discontinued                 
     operations                                              (2.1)  (11.1)
                                                             ----   ----- 
                                                                          
    Cash provided (required) by investing
     activities of continuing operations:                                 
         Capital expenditures                              (110.0) (165.0)
         Proceeds from disposal of assets                    18.9     3.4 
         Acquisitions, minority ownership
          positions and other investing                    (162.6) (121.3)
                                                           ------  ------ 
                                                                          
    Net cash required by investing activities of                          
     continuing operations                                 (253.7) (282.9)
                                                           ------  ------ 
                                                                          
    Cash required by investing activities of discontinued                 
     operations                                                 -    (4.7)
                                                              ---    ---- 
                                                                          
    Cash provided (required) by financing activities:                     
         Net (repayment) issuance of debt                   (80.2)  369.4 
         Issuance of capital stock                            3.1     4.8 
         Purchase of stock held in treasury                (155.7) (324.0)
         Proceeds from spin-off of JBT Corporation              -   196.2 
         Other financing                                     (4.8)    6.3 
                                                             ----     --- 
                                                                          
    Net cash (required) provided by financing activities   (237.6)  252.7 
                                                           ------   ----- 
                                                                          
    Effect of changes in foreign exchange rates on cash                   
     and cash equivalents                                    17.4    (5.1)
                                                             ----    ---- 
                                                                          
    Increase in cash and cash equivalents                   120.6   210.6 
                                                                          
    Cash and cash equivalents, beginning of period          340.1   129.5 
                                                            -----   ----- 
                                                                          
    Cash and cash equivalents, end of period               $460.7  $340.1 
                                                           ======  ====== 
    
    
    

SOURCE FMC Technologies, Inc.