FMC Technologies Inc. (FTI) filed Quarterly Report for the period ended 2009-09-30.
FMC Technologies Inc. designs manufactures and services technologically sophisticated systems and products for customers through their Energy Production Systems Energy Processing Systems FoodTech and Airport Systems segments. Fmc Technologies Inc. has a market cap of $6.56 billion; its shares were traded at around $53.53 with a P/E ratio of 18.7 and P/S ratio of 1.4. Fmc Technologies Inc. had an annual average earning growth of 45.5% over the past 5 years.
Highlight of Business Operations:
Selling, general and administrative (“SG&A”) expense for the third quarter of 2009 increased by $16.2 million compared to the prior-year quarter. SG&A expense for the quarter-ended September 30, 2009, included a $4.2 million favorable impact of foreign currency translation. The improvement in our common stock price and other investments held in an employee benefit trust for our non-qualified deferred compensation plan during the third quarter of 2009 resulted in an $11.2 million increase in compensation expense. Additionally, we had increased pension expense of $5.0 million year-over-year as a result of lower plan asset performance during 2008.
Other expense, net, reflected $7.4 million and $4.2 million in losses on foreign currency derivative instruments, for which hedge accounting is not applied, for the three months ended September 30, 2009 and 2008, respectively. Additionally, we recognized $1.8 million in gains for the three months ended September 30, 2009, compared to $2.1 million in expense during the third quarter of 2008, associated with investments held in an employee benefit trust for our non-qualified deferred compensation plan.
Energy Production Systems’ revenue for the three months ended September 30, 2009, increased $30.7 million compared to the same period in 2008. Revenue for the third quarter ended September 30, 2009 included a $96.6 million unfavorable impact of foreign currency translation. Excluding the impact of foreign currency translation, total revenues grew by $127.3 million during the three months ended September 30, 2009. The increase was attributable primarily to an improved portfolio of projects in our subsea business and better project execution during the third quarter of 2009, partially offset by a decline in our surface wellhead business.
Energy Production Systems’ operating profit totaled $140.4 million, or 15.1% of revenues, for the three months ended September 30, 2009, and was 3.8 percentage points above the operating profit generated in the comparable prior-year period. The margin improvement resulted primarily from an improved portfolio of projects in our subsea business and better project execution during the third quarter of 2009. On an absolute dollar basis, operating profit increased by $38.8 million during the third quarter of 2009 as compared to the prior-year period. Excluding the impact of foreign currency translation, operating profit increased $50.9 million during the quarter ended September 30, 2009, as compared to the same period in 2008.
Our corporate items reduced earnings by $32.4 million for the three months ended September 30, 2009, compared to $6.8 million for the same period in 2008. The increase in expense in 2009 reflects foreign currency losses of $5.8 million compared to a gain in the prior-year quarter of $4.7 million. Compensation expense also increased by $7.2 million for company stock and investments held in an employee benefit trust for our non-qualified deferred compensation plan. Additionally, we had increased pension expense of $5.7 million for the nine months ended September 30, 2009, compared to the prior-year period and increased interest expense of $1.2 million as a result of lower interest income during the quarter ended September 30, 2009, driven by reduced yields on cash investments.
Inbound orders represent the estimated sales value of confirmed customer orders received during the three and nine months ended September 30, 2009, and the impact of translation on the previous quarter’s backlog. Backlog translation positively affected orders by $155.1 million in the three months ended September 30, 2009, and negatively affected orders by $309.2 million in the comparable period of 2008. Backlog translation positively affected orders by $340.6 million in the nine-month period ended September 30, 2009, and negatively affected orders by $88.9 million in the comparable period of the prior year.
FTI is in the portfolios of Richard Aster Jr of Meridian Fund, Ron Baron of Baron Funds, John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
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