FMC Technologies Reports First Quarter 2011 Diluted Earnings per Share of $0.35

HOUSTON, April 26, 2011 /PRNewswire/ -- FMC Technologies, Inc. (NYSE: FTI) today reported first quarter 2011 revenue of $1.1 billion and diluted earnings per share from continuing operations of $0.35.  The diluted earnings per share included a tax benefit of $0.03 per diluted share.

Total inbound orders of $1.4 billion were up 11 percent from the first quarter of 2010 and included $940 million in subsea systems orders.  Backlog for the Company reached $4.6 billion including subsea systems backlog of $3.9 billion.  Subsea systems recorded its fifth consecutive quarterly backlog increase.

"The outlook for the subsea market in general, and our subsea business in particular, is strong," said John Gremp, President and Chief Executive Officer.  "We are also encouraged by the continued strength of the North American land activity and its impact on our fluid control and surface wellhead businesses. We are reiterating our estimate for 2011 diluted split-adjusted earnings per share of $1.60 to $1.70."

Review of Operations – First Quarter 2011

Energy Production Systems

Energy Production Systems' first quarter revenue was $856.4 million, including subsea systems revenue of $683 million.  Surface wellhead revenue was up 5 percent from the first quarter of 2010 with stronger North American activity partially offset by weakness in some of our international markets.

Energy Production Systems' operating profit of $82.2 million decreased 48 percent from the prior-year quarter, due to expected lower margins in subsea systems combined with increased costs in surface wellhead.

Energy Production Systems' inbound orders for the first quarter were $1.1 billion, including subsea systems orders of $940 million.  Backlog for Energy Production Systems was $4.2 billion, including $3.9 billion in subsea systems at the end of the first quarter.

Energy Processing Systems

Energy Processing Systems' first quarter revenue of $226.1 million was 35 percent higher than the prior-year quarter.  The increase came mainly from fluid control, with record revenue in the quarter.

Energy Processing Systems had record operating profit of $43.7 million in the first quarter, up 86 percent from the prior-year quarter.  The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.

Energy Processing Systems' inbound orders were a record $267.1 million in the first quarter led by strong orders in fluid control.  Backlog for the segment finished the quarter at $342.1 million.

Corporate Items

Corporate expense in the first quarter was $8.4 million, a decrease of $0.6 million from the prior-year quarter.  Other expense, net, was $8.2 million, a decrease of $12.6 million from the prior-year quarter.

The Company ended the quarter with net debt of $45.2 million.  Net interest expense was $1.5 million in the quarter.

Depreciation and amortization for the first quarter was $25.4 million, down $3.2 million from the prior-year quarter.  Capital expenditures for the first quarter totaled $41.0 million.

The Company's effective tax rate was 20.9 percent for the first quarter and included a $7.3 million credit for a foreign tax holiday.  

Summary and Outlook

FMC Technologies reported first quarter diluted earnings per share from continuing operations of $0.35 including a tax benefit of $0.03 per diluted share on revenue of $1.1 billion.

Total inbound orders of $1.4 billion were up 11 percent from the first quarter of 2010 and included $940 million in subsea systems orders.  Backlog for the Company stands at $4.6 billion, including subsea systems record backlog of $3.9 billion.

The Company reiterated its guidance for 2011 diluted split-adjusted earnings per share from continuing operations of $1.60 to $1.70.

FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry. Named by FORTUNE® Magazine as the World's Most Admired Oil and Gas Equipment, Service Company in 2010, the Company has approximately 12,000 employees and operates 27 production facilities in 16 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, 2010, and as 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 first quarter 2011 conference call at 8:00 a.m. EDT on Wednesday, April 27, 2011.  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.

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SOURCE FMC Technologies, Inc.