Foster Wheeler Ltd. Warrants 9/24/2009 (FWLTW) filed Quarterly Report for the period ended 2009-09-30.
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Highlight of Business Operations:
Our consolidated operating revenues decreased 29% to $1,216,400 in the third fiscal quarter of 2009, as compared to $1,718,400 in the corresponding period in fiscal year 2008. The decrease in operating revenues in the third fiscal quarter of 2009 reflects decreased flow-through revenues (described below) of $139,700 (representing 28% of the decrease in consolidated operating revenues), the foreign currency translation impact of the decline in the value of the British pound and Euro relative to the U.S. dollar and a decrease in the volume of business. Our consolidated operating revenues decreased approximately 29% excluding the impact of the change in flow-through
Our consolidated operating revenues decreased 27% to $3,789,700 in the first fiscal nine months of 2009, as compared to $5,215,100 in the first fiscal nine months of 2008. The decrease in operating revenues in the first fiscal nine months of 2009 reflects decreased flow-through revenues (described below) of $658,100 (representing 46% of the decrease in consolidated operating revenues), the foreign currency translation impact of the decline in the value of the British pound and Euro relative to the U.S. dollar and a decrease in the volume of business. Our consolidated operating revenues decreased approximately 16% excluding the impact of the change in flow-through revenues and foreign currency translation rates when comparing the first fiscal nine months of 2009 to the corresponding period of fiscal year 2008.
Our Global E&C Group’s new orders, measured in future revenues, were $688,800 in the fiscal third quarter of 2009, which decreased as compared to $847,700 in the fiscal second quarter of 2009 and $955,200 in the fiscal third quarter of 2008. These new orders are inclusive of flow-through revenues, as defined below, of $333,400, $335,700 and $290,900 for the fiscal third quarter of 2009, fiscal second quarter of 2009 and fiscal third quarter of 2008, respectively.
Our Global Power Group’s new orders were $212,100 in the fiscal third quarter of 2009, which increased as compared to $86,100 in the fiscal second quarter of 2009 and decreased compared to $435,100 in the fiscal third quarter of 2008. Our new orders during the fiscal third quarter of 2009 were impacted by the continuation of delays and cancellations of prospective projects occurring in the power markets that we serve.
Our Global E&C Group’s operating revenues in the fiscal third quarter and nine months ended September 30, 2009 included $510,200 and $1,570,500, respectively, of flow-through revenues. Flow-through revenues in the fiscal third quarter and nine months ended September 30, 2009 decreased by $139,800 and $658,100, respectively, compared to the corresponding periods in fiscal year 2008, representing 50% and 70%, respectively, of the decreases in our Global E&C Group’s operating revenues. Flow-through revenues and costs result when we purchase materials, equipment or third-party services on behalf of our customer on a reimbursable basis with no profit on the materials, equipment or third-party services and where we have the overall responsibility as the contractor for the engineering specifications and procurement or procurement services for the materials, equipment or third-party services included in flow-through costs. Flow-through revenues and costs do not impact contract profit or net earnings.
The decrease in SG&A expenses in the first fiscal nine months of 2009, compared to the corresponding period in fiscal year 2008, resulted from decreases in general overhead costs of $3,000, which is net of increased pension costs of $8,900 related to our U.S. pension plans, which are frozen to new entrants and additional benefit accruals, and sales pursuit costs of $1,600, while research and development costs were relatively unchanged.
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