FMC Technologies Inc. (FTI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Fmc Technologies Inc. has a market cap of $7.44 billion; its shares were traded at around $61.22 with a P/E ratio of 19.6 and P/S ratio of 1.6. Fmc Technologies Inc. had an annual average earning growth of 30.6% over the past 10 years.FTI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Richard Aster Jr of Meridian Fund, First Pacific Advisors of First Pacific Advisors, LLC, Ron Baron of Baron Funds, John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, Donald Yacktman of Yacktman Asset Management Co..
Energy Production Systems revenue for the three months ended June 30, 2010, decreased $111.0 million compared to the same period in 2009. Revenue for the quarter ended June 30, 2010 included a $20.7 million favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, revenues declined by $131.7 million during the second quarter of 2010, compared to the prior-year quarter. Segment revenue is impacted by the execution of backlog and trends in land and offshore oil and gas exploration and production, including shallow and deepwater development. The decline in oil and gas exploration activity during 2009, and consequently, the reduction in our subsea backlog during the prior year, resulted in the decline in revenues during the current quarter.
Energy Production Systems operating profit in the second quarter of 2010 decreased by $10.5 million over the prior year; however, as a percentage of revenue, operating margins were 70 basis points above the comparable prior-year period. The margin improvement was driven primarily by the acceleration of progress on higher margin subsea projects and lower costs. Foreign currency translation favorably impacted operating profit for the quarter ended June 30, 2010 by $3.7 million, compared to the prior-year quarter.
Our corporate items reduced earnings by $22.4 million for the three months ended June 30, 2010, compared to $17.2 million for the same period in 2009. The increase in expense primarily reflects net mark-to-market losses related to foreign currency exposures of $2.0 million in the second quarter of 2010, compared to gains in the prior-year period of $7.6 million, combined with increased corporate staff expense of $1.0 million. The increase was partially offset by lower pension expense of $1.5 million during the second quarter of 2010 resulting from a higher expected rate of return on assets. Additionally, we experienced lower medical expenses associated with our self insured medical plans during the quarter ended June 30, 2010 as compared to the prior-year period. We also recognized $1.6 million in net gains for the three months ended June 30, 2010, associated with the obligation and the investments held in an employee benefit trust for our non-qualified deferred compensation plan, compared to $0.8 million in net losses during the second quarter of 2009.
Energy Productions Systems order backlog at June 30, 2010, increased by $262.9 million compared to year-end 2009, reflecting higher subsea project orders. We continue to expect significant improvement in inbound orders and growth in backlog throughout 2010. Backlog of $2.6 billion at June 30, 2010, includes various projects for BP; Petrobras Cascade, GLL-10, Marlim and Manifold Frame Agreement; Shells Gumusut and Perdido Stage II; Statoils Gullfaks, Marulk, Pan Pandora and Snorre; and Totals Pazflor and Laggan-Tormore subsea projects.
Energy Processing Systems order backlog at June 30, 2010, increased by $34.5 million compared to year-end 2009, and by $3.6 million compared to June 30, 2009. The increase from year-end is driven primarily by higher demand for fluid control products attributable to the recovery of North American oilfield activity. This increase was partially offset by the weaker demand for loading systems products resulting from the postponement of liquefied natural gas infrastructure projects in 2009 and early 2010.
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Fmc Technologies Inc. has a market cap of $7.44 billion; its shares were traded at around $61.22 with a P/E ratio of 19.6 and P/S ratio of 1.6. Fmc Technologies Inc. had an annual average earning growth of 30.6% over the past 10 years.FTI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Richard Aster Jr of Meridian Fund, First Pacific Advisors of First Pacific Advisors, LLC, Ron Baron of Baron Funds, John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, Donald Yacktman of Yacktman Asset Management Co..
Highlight of Business Operations:
Other income (expense), net, reflected $2.0 million in losses for the three months ended June 30, 2010, on foreign currency derivative instruments, for which hedge accounting is not applied, compared to $7.6 million in gains during the three months ended June 30, 2009. Additionally, we recognized $1.0 million in expense for the three months ended June 30, 2010, associated with investments held in an employee benefit trust for our non-qualified deferred compensation plan, compared to $2.0 million in gains during the second quarter of 2009.Energy Production Systems revenue for the three months ended June 30, 2010, decreased $111.0 million compared to the same period in 2009. Revenue for the quarter ended June 30, 2010 included a $20.7 million favorable impact of foreign currency translation. Excluding the impact of foreign currency translation, revenues declined by $131.7 million during the second quarter of 2010, compared to the prior-year quarter. Segment revenue is impacted by the execution of backlog and trends in land and offshore oil and gas exploration and production, including shallow and deepwater development. The decline in oil and gas exploration activity during 2009, and consequently, the reduction in our subsea backlog during the prior year, resulted in the decline in revenues during the current quarter.
Energy Production Systems operating profit in the second quarter of 2010 decreased by $10.5 million over the prior year; however, as a percentage of revenue, operating margins were 70 basis points above the comparable prior-year period. The margin improvement was driven primarily by the acceleration of progress on higher margin subsea projects and lower costs. Foreign currency translation favorably impacted operating profit for the quarter ended June 30, 2010 by $3.7 million, compared to the prior-year quarter.
Our corporate items reduced earnings by $22.4 million for the three months ended June 30, 2010, compared to $17.2 million for the same period in 2009. The increase in expense primarily reflects net mark-to-market losses related to foreign currency exposures of $2.0 million in the second quarter of 2010, compared to gains in the prior-year period of $7.6 million, combined with increased corporate staff expense of $1.0 million. The increase was partially offset by lower pension expense of $1.5 million during the second quarter of 2010 resulting from a higher expected rate of return on assets. Additionally, we experienced lower medical expenses associated with our self insured medical plans during the quarter ended June 30, 2010 as compared to the prior-year period. We also recognized $1.6 million in net gains for the three months ended June 30, 2010, associated with the obligation and the investments held in an employee benefit trust for our non-qualified deferred compensation plan, compared to $0.8 million in net losses during the second quarter of 2009.
Energy Productions Systems order backlog at June 30, 2010, increased by $262.9 million compared to year-end 2009, reflecting higher subsea project orders. We continue to expect significant improvement in inbound orders and growth in backlog throughout 2010. Backlog of $2.6 billion at June 30, 2010, includes various projects for BP; Petrobras Cascade, GLL-10, Marlim and Manifold Frame Agreement; Shells Gumusut and Perdido Stage II; Statoils Gullfaks, Marulk, Pan Pandora and Snorre; and Totals Pazflor and Laggan-Tormore subsea projects.
Energy Processing Systems order backlog at June 30, 2010, increased by $34.5 million compared to year-end 2009, and by $3.6 million compared to June 30, 2009. The increase from year-end is driven primarily by higher demand for fluid control products attributable to the recovery of North American oilfield activity. This increase was partially offset by the weaker demand for loading systems products resulting from the postponement of liquefied natural gas infrastructure projects in 2009 and early 2010.
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