The Houston-based subsea specialist FMC Technologies Inc. (FTI) reported first-quarter earnings of $147.6 million, beating Wall Street expectations.
The average estimate of 34 analysts surveyed by Zacks Investment Research was for earnings of 60 cents per share on a per-share basis. But it had net income of 63 cents.
The company has generated first quarter 2015 revenue of $1.7 billion, down 7 percent from the prior-year quarter $1.82 billion, as stronger Subsea Technologies performance
was offset by the continued strength of the U.S. dollar and the decline in the North American land market.
Subsea Technologies operating profit increased 19 percent from the prior-year quarter to $168.7 million, primarily due to improved execution and stronger project margins related to backlog conversion. Its first quarter revenue was $1.2 billion, down 4 percent from the prior-year quarter due to the strength of the U.S. dollar.
Total inbound orders were $969.0 million and included $552.0 million in Subsea Technologies orders. Backlog for the Company was $5.5 billion, including Subsea Technologies backlog of $4.8 billion.
"We delivered solid first quarter earnings, largely the result of the continued strength of our Subsea Technologies performance," said John Gremp
, Chairman, President, and CEO of FMC Technologies. "We are leveraging our backlog and execution momentum, while taking actions in all of our businesses to strengthen our operating structure. With our strong customer relationships, we expect to inbound at least $3 billion of subsea awards in 2015."
FMC Technologies’ subsea systems business encompasses a wide range of equipment and technologies that are required to explore, drill and develop offshore oil and gas fields. We have a strong global presence in all of the world’s major basins. Whether it is high-pressure, high-temperature (HPHT) trees and wellheads, subsea controls and systems or production optimization services, we add value to our customers throughout the life of the field.