Foster Wheeler Reports Very Solid Results for Fourth Quarter and Full Year of 2009

24/02/2010


ZUG, Switzerland, Feb 25, 2010 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) today reported net income for the fourth quarter of 2009 of $65.1 million, or $0.51 per diluted share, compared with $99.9 million, or $0.75 per diluted share, in the fourth quarter of 2008. Net income in both quarterly periods was impacted by asbestos-related items as detailed in the attached table. Excluding such items from both quarterly periods, net income in the fourth quarter of 2009 was $86.2 million, or $0.67 per diluted share, compared with $137.2 million, or $1.03 per diluted share, in the fourth quarter of 2008. The non-cash asbestos provision in the fourth quarter of 2009 reflected an increased estimate of costs for the period 2010 through 2024, primarily related to defense costs.

Fourth-quarter 2009 consolidated EBITDA (earnings before interest expense, income taxes, depreciation and amortization) was $108.1 million, compared with $105.1 million in the fourth quarter of 2008. Consolidated EBITDA in both quarterly periods was also impacted by asbestos-related items as detailed in the attached table. Excluding such items from both quarterly periods, consolidated EBITDA in the fourth quarter of 2009 was $129.2 million, compared with $142.4 million in the fourth quarter of 2008.

For the full year 2009, net income was $350.2 million, or $2.75 per diluted share, compared with $526.6 million, or $3.68 per diluted share, in 2008. For the full year 2009, consolidated EBITDA was $503.8 million, compared with $686.1 million in 2008. Net income and consolidated EBITDA in 2009 and 2008 were impacted by asbestos-related items as detailed in the attached table. Excluding such items from both periods, net income in 2009 was $376.5 million, or $2.96 per diluted share, compared with $533.2 million, or $3.73 per diluted share, in 2008; and consolidated EBITDA in 2009 was $530.2 million, compared with $692.7 million in 2008.

The following tables present quarterly and average quarterly data, both as reported and as adjusted. The company believes that quarterly averages provide meaningful comparative relevance for certain key metrics in light of the significant quarter-to-quarter variability that is inherent in the company's financial results.

(in millions) Q4 2009 Qtrly Avg. 2009 Q4 2008 Qtrly Avg. 2008
Net income $65 $87 $100 $132
Net income, as adjusted $86 $94 $137 $133
Consolidated EBITDA $108 $126 $105 $172
Consolidated EBITDA, as adjusted $129 $133 $142 $173

In commenting on the operating performance of the company's two business groups in the fourth quarter of 2009, Foster Wheeler's Chairman and Chief Executive Officer Raymond J. Milchovich said, "Even though EBITDA for each of the two groups was below the record-high average quarter of 2008, the operating and commercial performance of both E&C and GPG continued to be excellent. Furthermore, each group continued to do a very good job of capturing available market opportunities. In addition, the company's cash position continued its sequential-quarter build, reaching $1 billion at the end of the fourth quarter of 2009."

Milchovich added, "For much of 2009, we publicly stated that our financial results were subject to the impact of non-operating items relative to 2008. We clearly witnessed those unfavorable impacts on our pre-tax income for the full year and the fourth quarter of 2009."

The impact of such non-operating items on the company's pretax income in 2009 as compared with 2008 amounted to approximately $102.0 million, consisting of an unfavorable currency translation of approximately $48 million, a $34.2 million reduction in interest income and a $19.3 million increase in pension expense.

The impact of such non-operating items on the company's pretax income in the fourth quarter of 2009 as compared with the average quarter of 2008, was approximately $18 million, consisting of an $8.4 million reduction in interest income, an unfavorable currency translation impact of approximately $5 million, and a $4.6 million increase in pension expense.

In addition, pre-tax income in the fourth quarter of 2009 was impacted by a charge of $9.8 million for severance costs, $6.1 million of which is associated with right-sizing the company's Global Engineering and Construction Group during the first half of 2010. Further, a higher effective tax rate in the fourth quarter of 2009 versus the effective tax rate for the average quarter of 2008 reduced net income by approximately $12 million.

Global Engineering and Construction (E&C) Group

(dollars in millions) Q4 2009 Qtrly Avg. 2009 Q4 2008 Qtrly Avg. 2008
New orders booked (FW Scope) $395 $494 $288 $526
Operating revenues (FW Scope) $489 $478 $534 $558
Segment EBITDA $95 $105 $123 $134
EBITDA Margin (FW Scope) 19.4% 22.0% 23.0% 24.0%

  • EBITDA in the fourth quarter of 2009 reflects a gain of $11.3 million for the settlement of a prior claim and a charge of $6.1 million for anticipated severance costs.
  • New orders booked in Foster Wheeler scope were below the average quarter of 2008, reflecting slippage of expected awards combined with routine quarterly variability.
  • Scope operating revenues were below the average quarter of 2008 due primarily to lower volumes of work executed.

Global Power Group (GPG)

(dollars in millions) Q4 2009 Qtrly Avg. 2009 Q4 2008 Qtrly Avg. 2008
New orders booked (FW Scope) $214 $150 $180 $334
Operating revenues (FW Scope) $216 $251 $417 $424
Segment EBITDA $52 $49 $42 $60
EBITDA Margin (FW Scope) 24.1% 19.3% 10.1% 14.1%

  • EBITDA in the fourth quarter of 2009 was below the average quarter of 2008 due to lower volumes of work.
  • New orders in Foster Wheeler scope were below the average quarter of 2008 but showed a trend of continued sequential-quarter improvement that began in the third quarter of 2009.
  • Scope operating revenues were below the average quarter of 2008 due to lower volumes of work executed.

In commenting on the company's market outlook, Milchovich said, "In our Global E&C Group, we continue to have a very good prospect list, and our clients appear to be committed to moving forward with prospective projects. However, the slowing that we saw in the market in late 2008 and 2009 - combined with increased competitive pressure - will likely have an unfavorable effect on E&C in 2010.

"We do not expect that the workforce adjustments associated with the $6.1 million severance charge will have a material impact on E&C scope revenues in 2010. Assuming an accelerated pace of new orders in the second half of 2010, the EBITDA margin on scope revenue for this business is likely to be in the range of 18% to 20% for the full year. This expected decline in margin, as compared to 2009, will likely result from competitive pressure and, to a lesser extent, some degree of inefficient utilization of manpower relative to 2009 caused by delays in the timing of prospect awards," said Milchovich.

"In our Global Power Group, we expect 2010 to be a transitional year," he continued. "To the extent that global GDP and power demand continue to recover from the low levels of 2009, we would expect to see a continued rebound in new orders as 2010 progresses. In GPG, we expect EBITDA margin on scope revenue to be in the range of 16% to 18% in 2010," said Milchovich.

Share Repurchase Program

On September 12, 2008, the company announced that its board of directors had authorized a $750 million share repurchase program. The company purchased no shares under the program during the fourth quarter of 2009. To date, the company has purchased 18.1 million common shares and has approximately $265 million remaining under the existing authorization.

Net Income Attributable to Foster Wheeler AG

All references to net income in this news release indicate net income attributable to Foster Wheeler AG.

Calculation of EBITDA

EBITDA is a supplemental financial measure not defined in generally accepted accounting principles, or GAAP. The Company defines EBITDA as net income attributable to Foster Wheeler AG before interest expense, income taxes, depreciation and amortization. The Company has presented EBITDA because it believes it is an important supplemental measure of operating performance. Certain covenants under our current and prior senior credit agreements use an adjusted form of EBITDA such that in the covenant calculations the EBITDA as presented herein is adjusted for certain unusual and infrequent items specifically excluded in the terms of our current and prior senior credit agreements. The Company believes that the line item on its consolidated statement of operations entitled "net income attributable to Foster Wheeler AG" is the most directly comparable GAAP financial measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income attributable to Foster Wheeler AG as an indicator of operating performance or any other GAAP financial measure.

EBITDA, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As EBITDA excludes certain financial information that is included in net income attributable to Foster Wheeler AG, users of this financial information should consider the type of events and transactions that are excluded.

The Company's non-GAAP performance measure, EBITDA, has certain material limitations as follows:

- It does not include interest expense. Because the Company has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations;

- It does not include taxes. Because the payment of taxes is a necessary and ongoing part of the Company's operations, any measure that excludes taxes has material limitations; and

- It does not include depreciation and amortization. Because the Company must utilize property, plant and equipment and intangible assets in order to generate revenues in its operations, depreciation and amortization are necessary and ongoing costs of its operations. Therefore, any measure that excludes depreciation and amortization has material limitations.

Calculation of EBITDA Margin

Segment EBITDA margin is calculated by dividing business unit operating revenues in Foster Wheeler Scope into business unit EBITDA.

Foster Wheeler Scope

Foster Wheeler Scope represents that portion of unfilled orders, new orders booked and operating revenues on which profit can be earned. Foster Wheeler Scope excludes revenues relating to third-party costs incurred by the Company as agent or principal on a reimbursable basis. The Company began comprehensively reporting Foster Wheeler Scope as of 2005.

Conference Call Information

Foster Wheeler AG plans to hold a conference call today, Thursday, February 25, at 6:00 p.m. Central European Time (12:00 p.m. Eastern Standard Time in the U.S.) to discuss its financial results for the fourth quarter and fiscal year ended December 31, 2009.

The call will be accessible to the public by telephone or webcast, and the company will post an accompanying slide presentation in the investor relations section of its website (http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.fwc.com&esheet=6192762&lan=en_US&anchor=www.fwc.com&index=1&md5=efc453bab4c3ddb707975d0299827581). To listen to the call by telephone, dial 973-935-8752 (conference I.D. No. 50918983) approximately ten minutes before the call. The conference call will also be available over the Internet at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.fwc.com&esheet=6192762&lan=en_US&anchor=www.fwc.com&index=2&md5=5c7fa452d3aa5bdd3675028a306d0502 or through StreetEvents at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.streetevents.com&esheet=6192762&lan=en_US&anchor=www.streetevents.com&index=3&md5=81cc03a671281408dc1158e98081b04f.

A replay of the call will be available on the company's website as well as by telephone. The replay can be accessed on the company's website for four weeks following the call. The replay will be available by telephone for one week following the call and can be accessed by dialing 706-645-9291 (replay passcode 50918983 required).

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The Company employs approximately 14,000 talented professionals with specialized expertise dedicated to serving clients through one of its two primary business groups. The Company's Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The Company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The Company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.fwc.com&esheet=6192762&lan=en_US&anchor=www.fwc.com&index=4&md5=515109ccf1eb8af621bebc235c7df933.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication or the relocation of the Company's principal executive offices to Geneva, Switzerland; further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by non-U.S. and U.S. companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

Foster Wheeler AG and Subsidiaries

Consolidated Statement of Operations

(in thousands of dollars, except share data and per share amounts)

(unaudited)

Fiscal Quarters Ended Fiscal Twelve Months Ended

December 31,
2009

December 26,
2008

December 31,
2009

December 26,
2008

Operating revenues $ 1,266,631 $ 1,639,189 $ 5,056,334 $ 6,854,290
Cost of operating revenues 1,084,532 1,435,990 4,297,687 5,958,644
Contract profit 182,099 203,199 758,647 895,646
Selling, general and administrative expenses 80,754 65,112 294,907 283,883
Other income, net (22,062 ) (17,966 ) (52,263 ) (53,001 )
Other deductions, net 11,224 29,262 30,931 54,382
Interest income (2,736 ) (9,588 ) (10,535 ) (44,743 )
Interest expense 4,005 1,417 14,122 17,621
Net asbestos-related provision 21,114 37,345 26,365 6,607
Income before income taxes 89,800 97,617 455,120 630,897
Provision/(benefit) for income taxes 26,137 (7,655 ) 93,762 97,028
Net income 63,663 105,272 361,358 533,869
Less: Net income attributable to noncontrolling interests (1,428 ) 5,390 11,202 7,249
Net income attributable to Foster Wheeler AG $ 65,091 $ 99,882 $ 350,156 $ 526,620
Shares Outstanding:

Weighted-average number of shares
outstanding for basic earnings per share

127,104,838 132,654,157 126,541,962 141,149,590

Weighted-average number of shares
outstanding for diluted earnings per share

127,902,133 133,212,830 127,174,611 143,104,030
Earnings per share:
Basic $ 0.51 $ 0.75 $ 2.77 $ 3.73
Diluted $ 0.51 $ 0.75 $ 2.75 $ 3.68

Foster Wheeler AG and Subsidiaries

Consolidated Balance Sheet

(in thousands of dollars)

(unaudited)

December 31,

December 26,
2009 2008
ASSETS
Current Assets:
Cash and cash equivalents $ 997,158 $ 773,163
Short-term investments - 2,448
Accounts and notes receivable, net:
Trade 526,525 608,994
Other 117,718 95,633
Contracts in process 219,774 241,135
Prepaid, deferred and refundable income taxes 46,478 31,667
Other current assets 33,902 37,146
Total current assets 1,941,555 1,790,186
Land, buildings and equipment, net 398,132 383,209
Restricted cash 34,905 22,737
Notes and accounts receivable - long-term 1,571 1,788
Investments in and advances to unconsolidated affiliates 228,030 210,776
Goodwill 88,702 62,165
Other intangible assets, net 73,029 59,874
Asbestos-related insurance recovery receivable 244,265 281,540
Other assets 87,781 82,223
Deferred tax assets 89,768 116,756
TOTAL ASSETS $ 3,187,738 $ 3,011,254
LIABILITIES, TEMPORARY EQUITY AND EQUITY
Current Liabilities:
Current installments on long-term debt $ 36,930 $ 24,375
Accounts payable 303,436 365,347
Accrued expenses 280,861 303,813
Billings in excess of costs and estimated earnings on uncompleted contracts 600,725 750,233
Income taxes payable 60,052 44,846
Total current liabilities 1,282,004 1,488,614
Long-term debt 175,510 192,989
Deferred tax liabilities 62,956 66,114
Pension, postretirement and other employee benefits 270,269 320,959
Asbestos-related liability 352,537 355,779
Other long-term liabilities 171,405 157,933
Commitments and contingencies
TOTAL LIABILITIES 2,314,681 2,582,388
Temporary Equity:
Non-vested share-based compensation awards subject to redemption 2,570 7,586
TOTAL TEMPORARY EQUITY 2,570 7,586
Equity:
Preferred shares - -
Common shares - 1,262
Registered shares 329,402 -
Paid-in capital 617,938 914,063
Retained earnings/(accumulated deficit) 322,181 (27,975 )
Accumulated other comprehensive loss (438,004 ) (494,788 )
TOTAL FOSTER WHEELER AG SHAREHOLDERS' EQUITY 831,517 392,562
Noncontrolling Interests 38,970 28,718
TOTAL EQUITY 870,487 421,280
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY $ 3,187,738 $ 3,011,254

Foster Wheeler AG and Subsidiaries

Business Segments

(in thousands of dollars)

(unaudited)

Fiscal Quarters Ended Fiscal Twelve Months Ended

December 31,
2009

December 26,
2008

December 31,
2009

December 26,
2008

Global Engineering & Construction Group

Backlog - in future revenues $ 3,512,700 $ 4,326,800 $ 3,512,700 $ 4,326,800
New orders booked - in future revenues 524,700 398,700 2,870,700 2,707,500
Operating revenues 1,047,847 1,219,091 4,040,082 5,147,227
EBITDA 95,142 122,626 421,186 535,602
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope 1,480,100 1,374,500 1,480,100 1,374,500
New orders booked - in Foster Wheeler Scope 395,000 288,100 1,975,200 2,102,900
Operating revenues - in Foster Wheeler Scope 489,314 533,680 1,910,997 2,233,125

Global Power Group

Backlog - in future revenues 600,100 1,177,600 600,100 1,177,600
New orders booked - in future revenues 216,300 182,800 611,000 1,348,500
Operating revenues 218,784 420,098 1,016,252 1,707,063
EBITDA 51,875 41,961 194,027 239,508
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope 588,500 1,164,800 588,500 1,164,800
New orders booked - in Foster Wheeler Scope 214,200 179,900 599,900 1,336,800
Operating revenues - in Foster Wheeler Scope 215,591 417,103 1,004,123 1,695,209

Corporate & Finance Group (2)

EBITDA (38,934 ) (59,511 ) (111,414 ) (89,043 )

Consolidated

Backlog - in future revenues 4,112,800 5,504,400 4,112,800 5,504,400
New orders booked - in future revenues 741,000 581,500 3,481,700 4,056,000
Operating revenues 1,266,631 1,639,189 5,056,334 6,854,290
EBITDA 108,083 105,076 503,799 686,067
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope 2,068,600 2,539,300 2,068,600 2,539,300
New orders booked - in Foster Wheeler Scope 609,200 468,000 2,575,100 3,439,700
Operating revenues - in Foster Wheeler Scope 704,905 950,783 2,915,120 3,928,334

(1)

Foster Wheeler Scope represents that portion of backlog, new orders booked and operating revenues on which profit can be earned. Foster Wheeler Scope excludes revenues relating to third-party costs incurred by the company as agent or principal on a reimbursable basis.

(2)

Includes intersegment eliminations.

Foster Wheeler AG and Subsidiaries

Reconciliations of EBITDA and Foster Wheeler Scope

(in thousands of dollars)

(unaudited)

Fiscal Quarters Ended Fiscal Twelve Months Ended

December 31,
2009

December 26,
2008

December 31,
2009

December 26,
2008

Reconciliation of EBITDA to Net Income*

EBITDA:

Global Engineering & Construction $ 95,142 $ 122,626 $ 421,186 $ 535,602
Global Power Group 51,875 41,961 194,027 239,508
Corporate & Finance Group (38,934 ) (59,511 ) (111,414 ) (89,043 )
Consolidated EBITDA 108,083 105,076 503,799 686,067
Less: Interest expense 4,005 1,417 14,122 17,621
Less: Depreciation/amortization (1) 12,850 11,432 45,759 44,798
Less: Provision/(benefit) for income taxes 26,137 (7,655 ) 93,762 97,028
Net income* $ 65,091 $ 99,882 $ 350,156 $ 526,620

Reconciliation of Foster Wheeler Scope Operating

Revenues to Operating Revenues

Global Engineering & Construction Group

Foster Wheeler Scope operating revenues $ 489,314 $ 533,680 $ 1,910,997 $ 2,233,125
Flow-through revenues 558,533 685,411 2,129,085 2,914,102
Operating revenues 1,047,847 1,219,091 4,040,082 5,147,227

Global Power Group

Foster Wheeler Scope operating revenues 215,591 417,103 1,004,123 1,695,209
Flow-through revenues 3,193 2,995 12,129 11,854
Operating revenues 218,784 420,098 1,016,252 1,707,063

Consolidated

Foster Wheeler Scope operating revenues 704,905 950,783 2,915,120 3,928,334
Flow-through revenues 561,726 688,406 2,141,214 2,925,956
Operating revenues $ 1,266,631 $ 1,639,189 $ 5,056,334 $ 6,854,290

(1)

The depreciation / amortization by business segment:
Fiscal Quarters Ended Fiscal Twelve Months Ended

December 31,
2009

December 26,
2008

December 31,
2009

December 26,
2008

Global Engineering & Construction Group $ 7,063 $ 6,007 $ 23,377 $ 22,530
Global Power Group 5,376 5,059 20,845 20,846
Corporate & Finance Group 411 366 1,537 1,422
Total depreciation / amortization $ 12,850 $ 11,432 $ 45,759 $ 44,798
* Net income attributable to Foster Wheeler AG.

Foster Wheeler AG and Subsidiaries

EBITDA, Net Income* and Diluted Earnings Per Share Reconciliation

(in thousands of dollars, except per share amounts)

(unaudited)

Fiscal Quarters Ended
December 31, 2009 December 26, 2008
Diluted Earnings Diluted Earnings
EBITDA Net Income*

Per Share

EBITDA

Net Income* Per Share
As adjusted $ 129,197 $ 86,205 $ 0.67 $ 142,421 $ 137,227 $ 1.03
Adjustments:

Net asbestos-related
provision

(21,114 ) (21,114 ) (0.16 ) (37,345 ) (37,345 ) (0.28 )
As reported $ 108,083 $ 65,091 $ 0.51 $ 105,076 $ 99,882 $ 0.75
Fiscal Twelve Months Ended
December 31, 2009 December 26, 2008
Diluted Earnings Diluted Earnings
EBITDA Net Income* Per Share EBITDA Net Income* Per Share
As adjusted $ 530,164 $ 376,521 $ 2.96 $ 692,674 $ 533,227 $ 3.73
Adjustments:

Net asbestos-related
provision

(26,365 ) (26,365 ) (0.21 ) (6,607 ) (6,607 ) (0.05 )
As reported $ 503,799 $ 350,156 $ 2.75 $ 686,067 $ 526,620 $ 3.68
*Net income attributable to Foster Wheeler AG.

Foster Wheeler AG and Subsidiaries

Average Calculations

(in thousands of dollars)

(unaudited)

2008
Full Year
Amount

2008
Quarterly
Average
Amount *

2009
Full Year
Amount

2009
Quarterly
Average
Amount *

Consolidated

Net income ** $ 526,620 $ 131,655 $ 350,156 $ 87,539
Adjusted net income ** 533,227 133,307 376,521 94,130
Consolidated EBITDA 686,067 171,517 503,799 125,950
Consolidated EBITDA, as adjusted 692,674 173,169 530,164 132,541

Global Engineering & Construction Group

New orders booked - in Foster Wheeler Scope $ 2,102,900 $ 525,725 $ 1,975,200 $ 493,800
Operating revenues - in Foster Wheeler Scope 2,233,125 558,281 1,910,997 477,749
Segment EBITDA 535,602 133,901 421,186 105,297
EBITDA margin 24.0 % 24.0 % 22.0 % 22.0 %

Global Power Group

New orders booked - in Foster Wheeler Scope $ 1,336,800 $ 334,200 $ 599,900 $ 149,975
Operating revenues - in Foster Wheeler Scope 1,695,209 423,802 1,004,123 251,031
Segment EBITDA 239,508 59,877 194,027 48,507
EBITDA margin 14.1 % 14.1 % 19.3 % 19.3 %
* To calculate the quarterly average dollar amounts, the company divided reported annual figures by four.
** Net income attributable to Foster Wheeler AG.

SOURCE: Foster Wheeler AG

Foster Wheeler AG
Media
Maureen Bingert, 908-730-4444
mailto:maureen_bingert@fwc.comInvesto
or
Investor Relations
Scott Lamb, 908-730-4155
mailto:scott_lamb@fwc.comOther
or
Other Inquiries
908-730-4000
fw@fwc.com

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