FMC Technologies Reports Third Quarter 2010 Diluted Earnings per Share of $0.66

HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- FMC Technologies, Inc. (NYSE: FTI) today reported third quarter 2010 revenue from continuing operations of $960 million, down 12 percent from the prior-year quarter due primarily to lower subsea systems revenue.  Diluted earnings per share from continuing operations were $0.66 compared to $0.73 in the prior-year quarter.

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Total backlog increased 28 percent from the second quarter of 2010 to $3.6 billion and included $3.1 billion in subsea systems.  It was the third consecutive quarterly backlog increase and was mainly driven by $1.2 billion in subsea systems orders.  The 2010 year-to-date subsea order amount of $3.0 billion is already the second highest annual total in FMC's history.

"We had another strong quarter for subsea orders consistent with our positive outlook on the subsea market," said Peter D. Kinnear, Chairman and Chief Executive Officer.  "International orders helped to offset the impact from the Gulf of Mexico drilling moratorium, which will continue to negatively impact our subsea systems business in the fourth quarter and into 2011.  We are raising our estimate of 2010 diluted earnings per share to a range of $2.90 to $2.95, which compares to our previous 2010 guidance of $2.70 to $2.90."

Energy Production Systems

Energy Production Systems' third quarter revenue was $770.1 million, including subsea systems revenue of $619 million.  Lower subsea backlog at the beginning of the quarter and the timing of new project execution led to the lower subsea systems volume.  Energy Production Systems' operating profit of $105.9 million decreased from the prior-year quarter due mostly to lower volume and operating margin in the subsea systems business.

Energy Production Systems' inbound orders for the third quarter were $1.4 billion, nearly double the inbound orders that were recorded in the third quarter of 2009.  Subsea systems orders were $1.2 billion, the second highest quarter for subsea orders in FMC's history.  Backlog for Energy Production Systems was $3.4 billion including $3.1 billion in subsea systems.  Both orders and backlog increased for the third consecutive quarter.

Energy Processing Systems

Energy Processing Systems' third quarter revenue was $192.7 million, a 16 percent increase over the prior-year quarter.  Energy Processing Systems' third quarter operating profit of $34.5 million was up 40 percent from the prior-year quarter.  The increase was mostly driven by higher volume and operating margin in the fluid control business, which had record revenue in the quarter.

Energy Processing Systems' inbound orders were $193.7 million for the third quarter, a 43 percent increase compared to the prior-year quarter.  The increases in revenue, operating profit and orders were predominately driven by the fluid control business, which continued to benefit from a high level of North American pressure pumping activity.  Backlog for the segment was $263.9 million at the end of the quarter.

Corporate Items

Corporate expense in the third quarter was $10.2 million, an increase of $0.9 million from the prior-year quarter.  Other expense, net, was $15.2 million, a decrease of $5.8 million from the prior-year quarter.

The Company ended the third quarter with net debt of $66.5 million.  Net interest expense was $1.8 million in the quarter.

The Company repurchased 679 thousand shares of common stock in the quarter for $40.9 million and now has 2.5 million shares remaining in its stock repurchase authorization.

Depreciation and amortization for the third quarter was $24.7 million, up $1.0 million from the previous quarter, and capital expenditures totaled $26.3 million.

The Company recorded an effective tax rate of 28.7 percent for the third quarter.

Summary and Outlook

FMC Technologies reported third quarter revenue from continuing operations of $960 million and diluted earnings per share from continuing operations of $0.66.

Total Company backlog increased 28 percent from the second quarter of 2010 to $3.6 billion and included $3.1 billion in subsea systems.  The backlog increase was mainly driven by $1.2 billion in subsea systems orders, which brought the year-to-date total for subsea systems orders to $3.0 billion.

The Company raised guidance for 2010 diluted earnings per share from continuing operations from the previous range of $2.70 to $2.90 to a new range of $2.90 to $2.95.

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 11,200 employees and operates 25 production facilities in 15 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, 2009, and may be 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 third quarter 2010 conference call at 9:00 a.m. EDT on Thursday, October 28, 2010.  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.

SOURCE FMC Technologies, Inc.