Foster Wheeler Reports Results for Fourth Quarter and Full Year of 2013

26/02/2014


  • 26% increase in Q4 2013 scope revenues in Global E&C Group versus average quarter of 2012
  • Second consecutive quarter of record-level scope backlog in Global E&C Group
  • 59% increase in Q4 2013 scope new orders in Global Power Group versus average quarter of 2012
  • Q4 2013 results from continuing operations impacted by discrete items

ZUG, Switzerland--(BUSINESS WIRE)--Feb. 27, 2014-- Foster Wheeler AG (Nasdaq:FWLT) today reported a loss from continuing operations for the fourth quarter of 2013 of $37.2 million, or $0.38 per diluted share, compared with income from continuing operations of $18.6 million, or $0.18 per diluted share, in the fourth quarter of 2012.

Income/loss from continuing operations in both quarterly periods was impacted by net asbestos-related provisions, as detailed in an attached table. Excluding such items from both quarterly periods, the adjusted income from continuing operations in the fourth quarter of 2013 was $2.8 million, or $0.03 per diluted share, compared with $41.3 million, or $0.39 per diluted share, in the year-ago quarter.

Three additional items had an unfavorable non-cash impact on adjusted income from continuing operations in the fourth quarter of 2013: a pretax impairment charge of $22.4 million, or $0.22 per diluted share, associated with a partially owned waste-to-energy facility in the company’s Global Engineering and Construction Group; a pretax charge of $15.1 million, or $0.11 per diluted share, for a restructuring in the Global Power Group associated with an organizational realignment designed to drive further efficiencies and strengthen the Group’s focus on environmental and industrial products; and a $10.7 million, or $0.11 per diluted share, provision associated with a tax audit in a non-U.S. jurisdiction. Excluding the impact of the these three items and asbestos, income from continuing operations in the fourth quarter of 2013 was $47.3 million, or $0.47 per diluted share, compared with $44.8 million, or $0.42 per diluted share, in the average quarter of 2012.

For the full-year 2013, income from continuing operations was $96.9 million, or $0.96 per diluted share, compared with $149.2 million, or $1.39 per diluted share, for 2012. Excluding the asbestos provisions from both years, adjusted income from continuing operations for 2013 was $127.1 million, or $1.25 per diluted share, compared with $179.1 million, or $1.66 per diluted share, in 2012.

The following tables present quarterly and average quarterly data for continuing operations, both as reported and as adjusted to exclude asbestos-related gains and provisions (as detailed in an attached table). 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.

                         
(dollars in millions, from continuing operations)     Q4 2013     Qtrly Avg. 2013     Q4 2012     Qtrly Avg. 2012
Income (loss)     $(37)     $24     $19     $37
Adjusted income     $3     $32     $41     $45
Consolidated revenues (FW Scope)     $702     $648     $646     $637
               

Foster Wheeler’s Chief Executive Officer, Kent Masters, said, -We are encouraged by our backlog and booking data for the fourth quarter of 2013. Specifically, our Global Engineering and Construction Group reported a 26% increase in scope revenues as compared to the average quarter of 2012. The Global E&C Group also reported its second consecutive quarter of record-level scope backlog. In addition, scope new orders in our Global Power Group were 59% above the average quarter of 2012.”

Masters said, -This backlog and booking data supports our view that the company’s enhanced operating performance in 2014 will be driven by top-line growth in both of our business groups, led in particular by a sharp increase in scope revenues in the Global E&C Group. Nevertheless, the company’s typical volatility in quarterly results will likely be evident in the first quarter of 2014, where we expect to see income well below run-rate levels.”

Global Engineering and Construction (E&C) Group

                         
(dollars in millions)     Q4 2013     Qtrly Avg. 2013     Q4 2012     Qtrly Avg. 2012
New orders booked (FW Scope)     $569     $686     $867     $599
Operating revenues (FW Scope)     $500     $452     $424     $397
Segment EBITDA     $27     $46     $53     $48
EBITDA Margin (FW Scope)     5.3%     10.2%     12.6%     12.1%
  • Scope new orders in the fourth quarter of 2013 remained at a healthy level.
  • Scope operating revenues in the fourth quarter of 2013 were 26% above the average quarter of 2012 due to an increase in the volume of work.
  • EBITDA in the fourth quarter of 2013 was below the average quarter of 2012 as the $22.4 million pretax impairment charge on our equity interest in a waste-to-energy facility in Italy more than offset the favorable impact of increased scope revenues, profit enhancements and utilization.

Global Power Group (GPG)

                         
(dollars in millions, EBITDA and revenues from continuing operations)     Q4 2013     Qtrly Avg. 2013     Q4 2012     Qtrly Avg. 2012
New orders booked (FW Scope)     $230     $173     $122     $145
Operating revenues (FW Scope)     $202     $196     $222     $241
Segment EBITDA     $32     $37     $46     $51
EBITDA Margin (FW Scope)     15.6%     18.8%     20.8%     21.3%
  • Scope new orders in the fourth quarter of 2013 were 59% above the average quarter of 2012, anchored by a contract for a large circulating fluidized bed boiler in South Korea.
  • Scope operating revenues in the fourth quarter of 2013 were below the average quarter of 2012, reflecting a lower volume of boiler work during the quarter.
  • EBITDA in the fourth quarter of 2013 was below the average quarter of 2012 due to the previously cited $15.1 million pretax restructuring charge, as well as the lower volume of boiler work.

Share Repurchase Program

The company did not purchase any of its shares during the fourth quarter of 2013.

Definitive Agreement with AMEC plc

As previously announced, the company has entered into a definitive agreement with AMEC plc pursuant to which AMEC will make an offer to acquire all the issued and to be issued registered shares of the company. For additional information, see the company’s press release dated February 13, 2014 and filings with the U.S. Securities and Exchange Commission.

Definitions

Income or Loss from Continuing Operations

All references to income or loss from continuing operations in this news release refer to -Income/loss from continuing operations attributable to Foster Wheeler AG” as reported in our consolidated financial statements.

Adjusted Income from Continuing Operations and Adjusted Earnings per Share from Continuing Operations

The company believes that adjusted income from continuing operations and adjusted earnings per share from continuing operations are important measures of performance because such adjusted figures exclude the variable impact of periodic asbestos-related gains and provisions. The company believes that the line item on its consolidated statement of operations entitled "Net income/loss attributable to Foster Wheeler AG" and -diluted earnings/loss per share attributable to Foster Wheeler AG” are the most directly comparable GAAP financial measures to adjusted income from continuing operations and adjusted earnings per share from continuing operations.

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/loss 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 senior unsecured credit agreement use EBITDA, as defined in such agreement, in the covenant calculations, which is different from EBITDA as presented herein. The company believes that the line item on its consolidated statement of operations entitled "Net income/loss 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/loss 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 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.

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its 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, minerals and metals, 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 Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

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 including: the timing and success of the proposed offer and acquisition of the Company by AMEC plc, the risk that the Company’s business will be adversely impacted during the pending proposed offer and acquisition of the Company by AMEC plc, benefits, effects or results of the Company’s redomestication to Switzerland, deterioration in global economic conditions, 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, the 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 the Company’s global operations, currency fluctuations, war, terrorist attacks and/or natural disasters affecting 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 the Company’s patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against the Company’s 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 or furnished to the Securities and Exchange Commission.

Additional Information

THE COMPANY'S SHAREHOLDERS ARE URGED TO READ ANY DOCUMENTS RELATING THERETO REGARDING THE OFFER BY AMEC PLC WHEN THEY BECOME AVAILABLE (INCLUDING THE EXHIBITS THERETO) AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE OFFER.

The offer has not commenced. At the time the offer is commenced, AMEC will file a registration statement on Form F-4, which will include a prospectus and joint proxy statement of AMEC and Foster Wheeler, and a Tender Offer statement on Schedule TO (the -Schedule TO”) and the Company intends to file a Recommendation Statement on Schedule 14D-9 with respect to the offer. These documents will contain important information about the offer that should be read carefully before any decision is made with respect to the offer. These materials will be made available to the shareholders of the Company at no expense to them. Investors and security holders will be able to obtain the documents (when available) free of charge at the SEC’s web site, www.sec.gov, after they have been filed. Any materials filed with the SEC may also be obtained without charge at the Company's website, www.fwc.com.

This announcement is for informational purposes only and does not constitute or form part of an offer to sell or the solicitation of an offer to buy or subscribe to any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States. No offering of securities shall be made in the United States except pursuant to registration under the US Securities Act of 1933, or an exemption therefrom.

 

Foster Wheeler AG and Subsidiaries
Consolidated Statement of Operations
(in thousands of dollars, except share data and per share amounts)
(unaudited)

         
Quarter Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
 
Operating revenues $ 851,073 $ 730,046 $ 3,306,450 $ 3,391,394
Cost of operating revenues   718,543     573,239     2,747,401     2,801,351  
Contract profit 132,530 156,807 559,049 590,043
 
Selling, general and administrative expenses 92,028 88,150 357,682 334,075
Other income, net 9,214 (4,495 ) (23,424 ) (37,490 )
Other deductions, net 11,256 9,539 34,615 34,601
Interest income (2,021 ) (2,218 ) (6,272 ) (10,801 )
Interest expense 3,251 2,935 13,227 13,797
Net asbestos-related provision   39,963     22,795     30,213     30,505  
(Loss)/income from continuing operations before income taxes (21,161 ) 40,101 153,008 225,356
Provision for income taxes   15,893     18,302     52,166     62,267  
(Loss)/income from continuing operations   (37,054 )   21,799     100,842     163,089  
Discontinued operations:
(Loss)/income from discontinued operations before income taxes - (12,342 ) 265 (13,193 )
Provision for income taxes from discontinued operations   -     -     -     -  
(Loss)/income from discontinued operations   -     (12,342 )   265     (13,193 )
Net (loss)/income (37,054 ) 9,457 101,107 149,896
Less: Net income attributable to noncontrolling interests   117     3,162     3,940     13,874  
Net (loss)/income attributable to Foster Wheeler AG $ (37,171 ) $ 6,295   $ 97,167   $ 136,022  
 
 
Weighted–average number of shares outstanding:
Basic (loss)/earnings per share 98,732,423 105,552,630 100,301,834 107,054,284
Diluted (loss)/earnings per share 98,732,423 105,970,858 101,386,673 107,313,539
 
Amounts attributable to Foster Wheeler AG:
(Loss)/income from continuing operations

$

(37,171

) $ 18,637 $

96,902

$ 149,215
(Loss)/income from discontinued operations   -     (12,342 )   265     (13,193 )
Net (loss)/income $ (37,171 ) $ 6,295   $ 97,167   $ 136,022  
 
Basic (loss)/earnings per share attributable to Foster Wheeler AG:
(Loss)/income from continuing operations

$

(0.38 ) $ 0.18 $ 0.97 $ 1.39
(Loss)/income from discontinued operations   -     (0.12 )   -     (0.12 )
Net (loss)/income $ (0.38 ) $ 0.06   $ 0.97   $ 1.27  
 
Diluted (loss)/earnings per share attributable to Foster Wheeler AG:
(Loss)/income from continuing operations $ (0.38 ) $ 0.18 $ 0.96 $ 1.39
(Loss)/income from discontinued operations   -     (0.12 )   -     (0.12 )
Net (loss)/income $ (0.38 ) $ 0.06   $ 0.96   $ 1.27  
 
 

Foster Wheeler AG and Subsidiaries
Consolidated Balance Sheet
(in thousands of dollars)
(unaudited)

    December 31,     December 31,
2013 2012
ASSETS
Current Assets:
Cash and cash equivalents $ 556,190 $ 582,322
Accounts and notes receivable, net:
Trade 671,770 609,213
Other 57,262 86,981
Contracts in process 197,232 228,979
Prepaid, deferred and refundable income taxes 62,856 57,404
Other current assets 38,431 47,138
Current assets of discontinued operations   -     1,505  
Total current assets   1,583,741     1,613,542  
Land, buildings and equipment, net 279,981 285,402
Restricted cash 82,867 62,189
Notes and accounts receivable – long-term 15,060 14,119
Investments in and advances to unconsolidated affiliates 181,315 205,476
Goodwill 169,801 133,518
Other intangible assets, net 113,463 105,100
Asbestos-related insurance recovery receivable 120,489 132,438
Long-term assets of discontinued operations - 49,579
Other assets 143,848 90,509
Deferred tax assets   49,707     42,052  
TOTAL ASSETS $ 2,740,272   $ 2,733,924  
LIABILITIES, TEMPORARY EQUITY AND EQUITY
Current Liabilities:
Current installments on long-term debt $ 12,513 $ 13,672
Accounts payable 282,403 298,411
Accrued expenses 304,312 231,602
Billings in excess of costs and estimated earnings on uncompleted contracts 569,652 564,356
Income taxes payable 39,078 64,992
Liabilities of discontinued operations   -     3,154  
Total current liabilities   1,207,958     1,176,187  
Long-term debt 113,719 124,034
Deferred tax liabilities 39,714 40,889
Pension, postretirement and other employee benefits 111,221 177,345
Asbestos-related liability 257,180 259,350
Other long-term liabilities 210,651 190,132
Commitments and contingencies    
TOTAL LIABILITIES   1,940,443     1,967,937  
Temporary Equity:
Non-vested share-based compensation awards subject to redemption   15,664     8,594  
TOTAL TEMPORARY EQUITY   15,664     8,594  
Equity:
Registered shares 259,937 269,633
Paid-in capital 216,450 266,943
Retained earnings 933,160 835,993
Accumulated other comprehensive loss (509,317 ) (567,603 )
Treasury shares   (150,131 )   (90,976 )
TOTAL FOSTER WHEELER AG SHAREHOLDERS’ EQUITY   750,099     713,990  
Noncontrolling interests   34,066     43,403  
TOTAL EQUITY   784,165     757,393  
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY $ 2,740,272   $ 2,733,924  
 
 

Foster Wheeler AG and Subsidiaries
Business Segments
(in thousands of dollars)
(unaudited)

           
Quarter Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012

Global Engineering & Construction Group

Backlog - in future revenues $ 3,396,500 $ 2,884,700 $ 3,396,500 $ 2,884,700
New orders booked - in future revenues 535,600 852,900 3,162,700 2,860,400
Operating revenues 646,866 504,240 2,512,587 2,419,327
EBITDA $ 26,650 $ 53,399 $ 183,911 $ 192,208
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope $ 2,973,200 $ 2,196,700 $ 2,973,200 $ 2,196,700
New orders booked - in Foster Wheeler Scope 569,200 866,500 2,745,500 2,397,600
Operating revenues - in Foster Wheeler Scope $ 499,877 $ 423,870 $ 1,808,752 $ 1,586,198
EBITDA Margin (FW Scope) 5.3% 12.6% 10.2% 12.1%
 

Global Power Group

Backlog - in future revenues (3) $ 608,100 $ 763,300 $ 608,100 $ 763,300
New orders booked - in future revenues (3) 225,700 125,300 692,800 589,100
Operating revenues (4) 204,207 225,806 793,863 972,067
EBITDA $ 31,528 $ 46,223 $ 147,227 $ 204,758
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope (3) $ 605,200 $ 753,500 $ 605,200 $ 753,500
New orders booked - in Foster Wheeler Scope (3) 230,400 121,500 690,600 579,000
Operating revenues - in Foster Wheeler Scope (4) $ 201,814 $ 222,351 $ 784,711 $ 962,247
EBITDA Margin (FW Scope) 15.6% 20.8% 18.8% 21.3%
 

Corporate & Finance Group (2)

EBITDA $ (61,459 ) $ (45,055 ) $ (111,269 ) $ (121,453 )
 

Consolidated

Backlog - in future revenues (3) $ 4,004,600 $ 3,648,000 $ 4,004,600 $ 3,648,000
New orders booked - in future revenues (3) 761,300 978,200 3,855,500 3,449,500
Operating revenues (4) 851,073 730,046 3,306,450 3,391,394
EBITDA from continuing operations $ (3,281 ) $ 54,567 $ 219,869 $ 275,513
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope (3) $ 3,578,400 $ 2,950,200 $ 3,578,400 $ 2,950,200
New orders booked - in Foster Wheeler Scope (3) 799,600 988,000 3,436,100 2,976,600
Operating revenues - in Foster Wheeler Scope (4) $ 701,691 $ 646,221 $ 2,593,463 $ 2,548,445

________________________

(1)   Foster Wheeler Scope represents the 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.
(3) The backlog and new orders booked balances above include balances for discontinued operations for periods prior to

December 31, 2013, which were insignificant based on our consolidated and business group balances.

(4) The operating revenues balances above represent balances from continuing operations.
 
 

Foster Wheeler AG and Subsidiaries
Reconciliations of Foster Wheeler Scope and EBITDA
(in thousands of dollars)
(unaudited)

           
Quarter Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012

Reconciliation of Foster Wheeler Scope Operating

Revenues to Operating Revenues (1)

Global Engineering & Construction Group

Foster Wheeler Scope operating revenues $ 499,877 $ 423,870 $ 1,808,752 $ 1,586,198
Flow-through revenues   146,989     80,370     703,835     833,129  
Operating revenues $ 646,866   $ 504,240   $ 2,512,587   $ 2,419,327  
 

Global Power Group

Foster Wheeler Scope operating revenues $ 201,814 $ 222,351 $ 784,711 $ 962,247
Flow-through revenues   2,393     3,455     9,152     9,820  
Operating revenues $ 204,207   $ 225,806   $ 793,863   $ 972,067  
 

Consolidated

Foster Wheeler Scope operating revenues $ 701,691 $ 646,221 $ 2,593,463 $ 2,548,445
Flow-through revenues   149,382     83,825     712,987     842,949  
Operating revenues $ 851,073   $ 730,046   $ 3,306,450   $ 3,391,394  
 

Reconciliation of EBITDA from continuing operations to net (loss)/income (2)

EBITDA from continuing operations:

Global Engineering & Construction Group

$ 26,650 $ 53,399 $ 183,911 $ 192,208
Global Power Group 31,528 46,223 147,227 204,758
Corporate & Finance Group   (61,459 )   (45,055 )   (111,269 )   (121,453 )
EBITDA from continuing operations (3,281 ) 54,567 219,869 275,513
Less: Interest expense 3,251 2,935 13,227 13,797
Less: Depreciation and amortization (3) 14,746 14,693 57,574 50,234
Less: Provision for income taxes   15,893     18,302     52,166     62,267  
(Loss)/income from continuing operations (2) (37,171 ) 18,637 96,902 149,215
(Loss)/income from discontinued operations (2)   -     (12,342 )   265     (13,193 )
Net (loss)/income (2) $ (37,171 ) $ 6,295   $ 97,167   $ 136,022  

________________

(1)The operating revenues represent balances from continuing operations.

(2)Amounts attributable to Foster Wheeler AG.

(3)The depreciation and amortization by business segment:
 
Quarter Ended Twelve Months Ended
December 31, December 31,
2013 2012 2013 2012
Global Engineering & Construction Group $ 8,897 $ 6,363 $ 33,067 $ 23,115
Global Power Group 5,367 5,799 20,958 22,637
Corporate & Finance Group   482     2,531     3,549     4,482  
Total depreciation and amortization $ 14,746   $ 14,693   $ 57,574   $ 50,234  
 
 

Foster Wheeler AG and Subsidiaries
EBITDA, Net Income/(Loss)* and Diluted Earnings/(Loss) Per Share Reconciliation
(in thousands of dollars, except per share amounts)
(unaudited)

             
 
Quarter Ended December 31,
2013 2012
EBITDA

Net
Income/(Loss)*

Diluted

Earnings/

(Loss)
Per Share

EBITDA

Net Income*

Diluted

Earnings
Per Share

 
As adjusted $ 36,682 $ 2,792 $ 0.03 $ 77,362 $ 41,286 $ 0.39
Adjustments:
Net asbestos-related provision (39,963 ) (39,963 ) (0.41 ) (22,795 ) (22,649 ) (0.21 )
           
As reported from continuing operations $ (3,281 ) $ (37,171 ) $ (0.38 ) $ 54,567   $ 18,637 $ 0.18
As reported from discontinued operations   -     -     (12,342 )   (0.12 )
As reported $ (37,171 ) $ (0.38 ) $ 6,295   $ 0.06  
 
Twelve Months Ended December 31,
2013 2012
EBITDA

Net Income*

Diluted

Earnings
Per Share

EBITDA

Net Income*

Diluted

Earnings
Per Share

 
As adjusted $ 250,082 $ 127,115 $ 1.25 $ 306,018 $ 179,137 $ 1.66
Adjustments:
Net asbestos-related provision (30,213 ) (30,213 ) (0.29 ) (30,505 ) (29,922 ) (0.27 )
           
As reported from continuing operations $ 219,869   $ 96,902 $ 0.96 $ 275,513   $ 149,215 $ 1.39
As reported from discontinued operations   265     -     (13,193 )   (0.12 )
As reported $ 97,167   $ 0.96   $ 136,022   $ 1.27  
 

__________________

* Net (loss)/income attributable to Foster Wheeler AG.
 

 

Quarter Ended
December 31, 2013

Net Income*

Diluted

Earnings
Per Share

As adjusted net income* $ 2,792 $ 0.03
Excluding the after tax impact of:
Impairment charge (1) 22,400 0.22
Restructuring charge (2) 11,400 0.11
Provision for tax audit (3)   10,700     0.11  
As adjusted net income* excluding above items $ 47,292   $ 0.47  

__________________

(1) Impairment charge of $22,400 (pretax) on a partially owned waste-to-energy facility in our Global Engineering & Construction Group.
(2) Restructuring charge of $15,100 (pretax) in our Global Power Group.
(3) Tax provision associated with a tax audit in a non-U.S. jurisdiction.
         

Foster Wheeler AG and Subsidiaries
Average Calculations
(in thousands of dollars, except per share amounts)
(unaudited)

 
2012

Full Year

2012

Quarterly

Average(1)

2013

Full Year

2013

Quarterly

Average(1)

Consolidated

Operating revenues - in Foster Wheeler Scope (2) $ 2,548,445 $ 637,111 $ 2,593,463 $ 648,366
Income from continuing operations (3) 149,215 37,304 96,902 24,226
Adjusted income from continuing operations (3) 179,137 44,784 127,115 31,779
Consolidated EBITDA from continuing operations 275,513 68,878 219,869 54,967
Consolidated EBITDA from continuing operations, as adjusted $ 306,018 $ 76,505 $ 250,082 $ 62,521
Adjusted diluted earnings per share $ 1.66 $ 0.42 $ 1.25 $ 0.31
 
 

Global Engineering & Construction Group

New orders booked - in Foster Wheeler Scope $ 2,397,600 $ 599,400 $ 2,745,500 $ 686,375
Operating revenues - in Foster Wheeler Scope 1,586,198 396,550 1,808,752 452,188
EBITDA $ 192,208 $ 48,052 $ 183,911 $ 45,978
EBITDA margin (FW Scope) 12.1 % 12.1 % 10.2 % 10.2 %
 
 

Global Power Group

New orders booked - in Foster Wheeler Scope (4) $ 579,000 $ 144,750 $ 690,600 $ 172,650
Operating revenues - in Foster Wheeler Scope (2) 962,247 240,562 784,711 196,178
EBITDA $ 204,758 $ 51,190 $ 147,227 $ 36,807
EBITDA margin (FW Scope) 21.3 % 21.3 % 18.8 % 18.8 %

________________________

(1) To calculate the quarterly average dollar amounts, the company divided reported annual figures by four.
(2) The operating revenues represent balances from continuing operations.
(3) Amounts attributable to Foster Wheeler AG.
(4) New orders booked balances above include balances for discontinued operations for periods prior to 2013,

which were insignificant based on our consolidated and business group balances.

Source: Foster Wheeler AG

Media
Patti Landsperger, 908-713-2944
patti_landsperger@fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries
908-730-4000
fw@fwc.com

Return to topTop