Foster Wheeler AG has reported an income from continuing operations for the second quarter of this year of US$ 85.6 million, compared with US$ 68.3 million for Q2 2013. Income from continuing operations in both quarterly periods was impacted by net asbestos related gains and provisions. Removing such items from both quarterly periods, the adjusted income from continuing operations in Q2 2014 was US$ 86.8 million and US$ 54.6 million for Q2 2013.
Results for Q2 2014 include the impact of three additional items:
- A favourable US$ 32.5 million settlement in connection with the terms related to the expiration of a steam generator technology license.
- The benefit of US$ 22.3 million from the reversal of interest, penalties and tax provision as a result of settlements with non-US tax authorities.
- US$ 3.9 million of third party transaction costs in connection with the previously announced acquisition of Foster Wheeler by AMEC plc.
Removing the impact of the above, and the asbestos provision, income from continuing operations in Q2 2014 was US$ 35.9 million.
For the first six months of the year, income from continuing operations was US$ 102.7 million, compared with US$ 85.2 million in 1H 2013.
Kent Masters, CEO, Foster Wheeler said, ‘Our adjusted income from continuing operations in the second quarter of 2014 was more than double the average quarter of 2013, due largely to the technology license settlement and the tax settlements. Operationally, our Global Engineering and Constriction (E&C) Group reported a sharp increase in scope revenues and EBITDA as compared to the average quarter of 2013, a very solid level of new orders and nearly US$ 3 billion in scope backlog.
‘We continue to expect that our Global E&C Group will report sharply higher scope revenues for the full year 2014 as compared to the full year 2013. However, in our Global Power Group, we now believe that scope revenue is likely to be down modestly for the full year 2014 as compared to the full year 2013. We believe the expected decline in GPG scope revenue is a reflection of the timing of new orders; nevertheless, we continue to see solid booking prospects in GPG for this year and beyond.’
Adapted from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/11082014/foster-wheeler-q2-2014/