FMC remains positive as results fall

FMC Technologies is down 15% from 2014, however, its subsea orders were stronger, and the company expects them to steadily increase to exceed US$3 billion in 2015.

Image from FMC.

The company’s 2Q 2015 revenue came in at $1.7 billion, a 15% drop from 2Q 2014, which the company attributes to the decline in North American land market and its severe impact on its surface technologies segment revenue.

Inbound orders totaled about $1.4 billion, including $1 billion in subsea technologies orders, bringing FMC’s backlog to $5.3 billion in 2Q that includes $4.7 billion of subsea technologies backlog.

"Subsea orders were stronger in the second quarter, as we received just over $1 billion of awards," said John Gremp, FMC chairman and CEO.  "We have increased confidence of exceeding $3 billion of subsea awards this year.  Because our execution remains solid, we maintain our expectation of delivering Subsea Technologies margins of approximately 15% for the full year." 

FMC’s subsea technologies 2Q 2015 revenue was $1.2 billion, a drop of 7% compared to 2Q 2014 that the company says its due to the strength of the US dollar.  Excluding the impact of foreign currency translation, total revenue increased by $62.2 million year-over-year. Inbound orders were $1 billion, with a backlog of $4.7 billion, FMC reported.

FMC’s surface technologies 2Q 2015 was down 29% year-over-year at $363.3 million, as activity continued to decrease in the North American market. Inbound orders in 2Q 2015 were $306.2 million, down 39% from 2Q 2014, again attributed to North American inbound slowed by more than half, and international orders declined. Backlog currently stands at $466.6 million.

The company’senergy infrastructure 2Q 2015 revenue dropped 32% from 2Q 2014 to $101.4 million. The operating profit took a 71% dive from 2Q 2014, hitting only $5.3 million. Inbound orders for 2Q 2015 were $112.7 million and backlog was $187.1 million.

FMC Technologies ended 2Q 2015 with net debt of $699.4 million.  Net interest expense was $9.0 million in the quarter, the company said.