Foster Wheeler Reports Results for Second Quarter of 2014

06/08/2014


ZUG, Switzerland--(BUSINESS WIRE)--Aug. 7, 2014-- Foster Wheeler AG (Nasdaq: FWLT) today reported income from continuing operations for the second quarter of 2014 of $85.6 million, or $0.85 per diluted share, compared with $68.3 million, or $0.68 per diluted share, in the second quarter of 2013.

Income from continuing operations in both quarterly periods was impacted by net asbestos-related gains and provisions, as detailed in an attached table. Excluding such items from both quarterly periods, adjusted income from continuing operations in the second quarter of 2014 was $86.8 million, or $0.86 per diluted share, compared with $54.6 million, or $0.54 per diluted share, in the year-ago quarter.

Results for the second quarter of 2014 include the impact of three additional items: a favorable $32.5 million, or $0.32 per diluted share, settlement in connection with the terms related to the expiration of a steam generator technology license; the benefit of $22.3 million, or $0.22 per diluted share, from the reversal of interest, penalties and tax provision as a result of settlements with non-U.S. tax authorities; and $3.9 million, or $0.03 per share, of third-party transaction costs in connection with the previously announced acquisition of Foster Wheeler by AMEC plc. Excluding the impact of these three items and the asbestos provision, income from continuing operations in the second quarter of 2014 was $35.9 million, or $0.35 per diluted share.

For the first six months of 2014, income from continuing operations was $102.7 million, or $1.02 per diluted share, compared with $85.2 million, or $0.83 per diluted share, for the first six months of 2013.

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)               Q2 2014       Qtrly Avg. 2014       Q2 2013       Qtrly Avg. 2013
Income               $86       $51       $68       $24
Adjusted income               $87       $53       $55       $32
Consolidated revenues (FW Scope)               $725       $674       $642       $648
                               

Foster Wheeler’s Chief Executive Officer, Kent Masters, 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 Construction (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 $3 billion in scope backlog.”

Masters said, -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.”

Global Engineering and Construction (E&C) Group

                                                 
(dollars in millions)                   Q2 2014       Qtrly Avg. 2014       Q2 2013       Qtrly Avg. 2013
New orders booked (FW Scope)                   $545       $515       $537       $686
Operating revenues (FW Scope)                   $522       $483       $443       $452
Segment EBITDA                   $56       $48       $62       $46
EBITDA Margin (FW Scope)                   10.8%       10.0%       14.0%       10.2%
                                   
  • Scope new orders in the second quarter of 2014 remained at a robust level.
  • Scope operating revenues in the second quarter of 2014 were above the average quarter of 2013 due to an increased volume of work executed.
  • EBITDA in the second quarter of 2014 was above the average quarter of 2013, aided by the increased volume of work and a reduced level of sales pursuit costs, partially offset by lower profit enhancement opportunities. EBITDA in the second quarter of 2013 also included the favorable impact of a $3.0 million pretax litigation settlement.

Global Power Group (GPG)

                                         

(dollars in millions; EBITDA and revenues from continuing

operations)

          Q2 2014       Qtrly Avg. 2014       Q2 2013       Qtrly Avg. 2013
New orders booked (FW Scope)           $89       $285       $89       $173
Operating revenues (FW Scope)           $204       $191       $199       $196
Segment EBITDA           $64       $46       $46       $37
EBITDA Margin (FW Scope)           31.5%       24.3%       22.9%       18.8%
                           
  • Scope new orders in the second quarter of 2014 were below the average quarter of 2013, reflecting slippage in the expected booking date for several prospects. Scope new orders for the average quarter of 2014 were well above the average quarter of 2013 due to a very strong level of new orders in the first quarter of 2014.
  • Scope operating revenues in the second quarter of 2014 were modestly above the average quarter of 2013, reflecting the timing and mix of work executed.
  • EBITDA in the second quarter of 2014 was above the average quarter of 2013 due to the $32.5 million technology license settlement referenced above.

Share Repurchase Program

The company did not purchase any of its shares during the second quarter of 2014.

Definitive Agreement with AMEC plc

As previously announced, the company entered into an Implementation Agreement with AMEC plc on February 13, 2014 (subsequently amended, including by a Deed of Amendment dated May 28, 2014), 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 about the terms of the Implementation Agreement, please see the company’s Current Reports on Form 8-K, filed with the U.S. Securities and Exchange Commission on February 13, 2014 (including the complete text of the Implementation Agreement, which is attached as Exhibit 2.1 thereto) and on May 28, 2014 (including the complete text of the Deed of Amendment, which is attached as Exhibit 2.1 thereto), available at www.sec.gov.

Definitions

Income from Continuing Operations

All references to income from continuing operations in this news release refer to -Income 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 attributable to Foster Wheeler AG" and -diluted earnings per share attributable to Foster Wheeler AG” are the most directly comparable GAAP (generally accepted accounting principles) 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 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 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 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 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 website 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 on February 27, 2014, 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 (INCLUDING ANY EXHIBITS THERETO) RELATING TO THE OFFER BY AMEC PLC WHEN SUCH DOCUMENTS BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT AMEC'S OFFER.

The offer has not commenced. At the time the offer is commenced, AMEC will file with the SEC a registration statement on Form F-4, which will include a prospectus of AMEC in respect of the AMEC Shares to be issued in the offer, and a tender offer statement on Schedule TO (together with related documents, including a related letter of transmittal), and the company will file with the SEC 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 June 30,   Six Months Ended June 30,
  2014     2013     2014     2013  
 
Operating revenues $ 851,767 $ 863,407 $ 1,585,466 $ 1,653,551
Cost of operating revenues   716,722     709,800     1,334,886     1,380,498  
Contract profit 135,045 153,607 250,580 273,053
 
Selling, general and administrative expenses 83,147 89,801 165,194 180,133
Other income, net (40,410 ) (18,014 ) (46,550 ) (22,765 )
Other deductions, net 1,526 10,490 12,229 15,802
Interest income (1,510 ) (1,482 ) (2,913 ) (2,944 )
(Reversal of interest expense)/interest expense (1,846 ) 3,916 1,816 6,588
Net asbestos-related provision/(gain)   1,209     (13,750 )   3,217     (11,750 )
Income from continuing operations before income taxes 92,929 82,646 117,587 107,989
Provision for income taxes   6,355     13,319     16,073     18,479  
Income from continuing operations   86,574     69,327     101,514     89,510  
Discontinued operations:
Income/(loss) from discontinued operations before income taxes - 2,383 - (1,495 )
Provision for income taxes from discontinued operations   -     -     -     -  
Income/(loss) from discontinued operations   -     2,383     -     (1,495 )
Net income 86,574 71,710 101,514 88,015
Less: Net income/(loss) attributable to noncontrolling interests   980     1,011     (1,147 )   4,290  
Net income attributable to Foster Wheeler AG $ 85,594   $ 70,699   $ 102,661   $ 83,725  
 
 
Weighted–average number of shares outstanding:
Basic earnings per share 99,834,508 100,001,580 99,492,867 102,182,011
Diluted earnings per share 101,201,933 100,254,752 101,004,086 102,566,647
 
Amounts attributable to Foster Wheeler AG:
Income from continuing operations $ 85,594 $ 68,316 $ 102,661 $ 85,220
Income/(loss) from discontinued operations   -     2,383     -     (1,495 )
Net income $ 85,594   $ 70,699   $ 102,661   $ 83,725  
 
Basic earnings per share attributable to Foster Wheeler AG:
Income from continuing operations $ 0.86 $ 0.68 $ 1.03 $ 0.83
Income/(loss) from discontinued operations   -     0.03     -     (0.01 )
Net income $ 0.86   $ 0.71   $ 1.03   $ 0.82  
 
Diluted earnings per share attributable to Foster Wheeler AG:
Income from continuing operations $ 0.85 $ 0.68 $ 1.02 $ 0.83
Income/(loss) from discontinued operations   -     0.03     -     (0.01 )
Net income $ 0.85 $ 0.71 $ 1.02 $ 0.82
 
Return of capital distribution per share $ 0.40 $ - $ 0.40 $ -
 

Foster Wheeler AG and Subsidiaries

Consolidated Balance Sheet

(in thousands of dollars)

(unaudited)

 
      June 30,   December 31,
  2014     2013  
ASSETS
Current Assets:
Cash and cash equivalents $ 518,537 $ 556,190
Accounts and notes receivable, net:
Trade 688,290 671,770
Other 75,278 57,262
Contracts in process 201,725 197,232
Prepaid, deferred and refundable income taxes 54,099 62,856
Other current assets   38,851     38,431  
Total current assets   1,576,780     1,583,741  
Land, buildings and equipment, net 270,913 279,981
Restricted cash 37,290 82,867
Notes and accounts receivable – long-term 14,452 15,060
Investments in and advances to unconsolidated affiliates 166,738 181,315
Goodwill 172,141 169,801
Other intangible assets, net 107,166 113,463
Asbestos-related insurance recovery receivable 116,791 120,489
Other assets 149,246 143,848
Deferred tax assets   48,050     49,707  
TOTAL ASSETS $ 2,659,567   $ 2,740,272  
LIABILITIES, TEMPORARY EQUITY AND EQUITY
Current Liabilities:
Current installments on long-term debt $ 16,398 $ 12,513
Accounts payable 278,066 282,403
Accrued expenses 258,239 304,312
Billings in excess of costs and estimated earnings on uncompleted contracts 539,729 569,652
Income taxes payable   45,484     39,078  
Total current liabilities   1,137,916     1,207,958  
Long-term debt 102,475 113,719
Deferred tax liabilities 41,706 39,714
Pension, postretirement and other employee benefits 105,974 111,221
Asbestos-related liability 241,923 257,180
Other long-term liabilities 146,194 210,651
Commitments and contingencies    
TOTAL LIABILITIES   1,776,188     1,940,443  
Temporary Equity:
Non-vested share-based compensation awards subject to redemption   14,675     15,664  
TOTAL TEMPORARY EQUITY   14,675     15,664  
Equity:
Registered shares 263,369 259,937
Paid-in capital 201,443 216,450
Retained earnings 1,035,821 933,160
Accumulated other comprehensive loss (507,515 ) (509,317 )
Treasury shares   (150,131 )   (150,131 )
TOTAL FOSTER WHEELER AG SHAREHOLDERS’ EQUITY   842,987     750,099  
Noncontrolling interests   25,717     34,066  
TOTAL EQUITY   868,704     784,165  
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY $ 2,659,567   $ 2,740,272  
 
 

Foster Wheeler AG and Subsidiaries

Business Segments

(in thousands of dollars)

(unaudited)

 
          Quarter Ended June 30,     Six Months Ended June 30,
2014     2013 2014     2013

Global Engineering & Construction Group

Backlog - in future revenues $ 3,794,200 $ 2,655,200 $ 3,794,200 $ 2,655,200
New orders booked - in future revenues 1,106,600 661,000 1,667,300 1,128,700
Operating revenues 645,473 662,719 1,198,734 1,250,693
EBITDA 56,409 62,133 96,463 97,321
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope 2,983,800 2,089,900 2,983,800 2,089,900
New orders booked - in Foster Wheeler Scope 544,600 537,000 1,030,300 872,500
Operating revenues - in Foster Wheeler Scope $ 521,498 $ 443,488 $ 965,165 $ 868,242
 

Global Power Group

Backlog - in future revenues (3) $ 753,500 $ 626,000 $ 753,500 $ 626,000
New orders booked - in future revenues (3) 91,900 90,300 573,900 289,200
Operating revenues (4) 206,294 200,688 386,732 402,858
EBITDA 64,094 45,584 92,820 70,271
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope (3) 753,300 616,400 753,300 616,400
New orders booked - in Foster Wheeler Scope (3) 89,400 88,600 569,200 284,700
Operating revenues - in Foster Wheeler Scope (4) $ 203,789 $ 198,885 $ 381,872 $ 398,156
 

Corporate & Finance Group (2)

EBITDA $ (15,577 ) $ (8,712 ) $ (39,595 ) $ (28,509 )
 

Consolidated

Backlog - in future revenues (3) $ 4,547,700 $ 3,281,200 $ 4,547,700 $ 3,281,200
New orders booked - in future revenues (3) 1,198,500 751,300 2,241,200 1,417,900
Operating revenues (4) 851,767 863,407 1,585,466 1,653,551
EBITDA from continuing operations 104,926 99,005 149,688 139,083
 
Foster Wheeler Scope (1):
Backlog - in Foster Wheeler Scope (3) 3,737,100 2,706,300 3,737,100 2,706,300
New orders booked - in Foster Wheeler Scope (3) 634,000 625,600 1,599,500 1,157,200
Operating revenues - in Foster Wheeler Scope (4) $ 725,287 $ 642,373 $ 1,347,037 $ 1,266,398

_______________

(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, 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)

 
      Twelve Months
Ended
Quarter Ended June 30,     Six Months Ended June 30, December 31,
2014     2013 2014     2013 2013

Reconciliation of Foster Wheeler Scope Operating

Revenues to Operating Revenues (1)

 

Global Engineering & Construction Group

Foster Wheeler Scope operating revenues $ 521,498 $ 443,488 $ 965,165 $ 868,242 $ 1,808,752
Flow-through revenues   123,975     219,231     233,569     382,451     703,835  
Operating revenues $ 645,473   $ 662,719   $ 1,198,734   $ 1,250,693   $ 2,512,587  
 

Global Power Group

Foster Wheeler Scope operating revenues $ 203,789 $ 198,885 $ 381,872 $ 398,156 $ 784,711
Flow-through revenues   2,505     1,803     4,860     4,702     9,152  
Operating revenues $ 206,294   $ 200,688   $ 386,732   $ 402,858   $ 793,863  
 

Consolidated

Foster Wheeler Scope operating revenues $ 725,287 $ 642,373 $ 1,347,037 $ 1,266,398 $ 2,593,463
Flow-through revenues   126,480     221,034     238,429     387,153     712,987  
Operating revenues $ 851,767   $ 863,407   $ 1,585,466   $ 1,653,551   $ 3,306,450  
 

Reconciliation of EBITDA from continuing operations to Net Income (2)

EBITDA from continuing operations:

Global Engineering & Construction Group $ 56,409 $ 62,133 $ 96,463 $ 97,321 $ 183,911
Global Power Group 64,094 45,584 92,820 70,271 147,227
Corporate & Finance Group   (15,577 )   (8,712 )   (39,595 )   (28,509 )   (111,269 )
EBITDA from continuing operations 104,926 99,005 149,688 139,083 219,869
Less: (Reversal of interest expense)/interest expense (1,846 ) 3,916 1,816 6,588 13,227
Less: Depreciation and amortization (3) 14,823 13,454 29,138 28,796 57,574
Less: Provision for income taxes   6,355     13,319     16,073     18,479     52,166  
Income from continuing operations (2) 85,594 68,316 102,661 85,220 96,902
Income/(loss) from discontinued operations (2)   -     2,383     -     (1,495 )   265  
Net income (2) $ 85,594   $ 70,699   $ 102,661   $ 83,725   $ 97,167  
 
(1)   The operating revenues represent balances from continuing operations.
(2) Amounts attributable to Foster Wheeler AG.
(3) The depreciation and amortization by business segment:
                        Twelve Months
Ended
Quarter Ended June 30, Six Months Ended June 30, December 31,
2014 2013 2014 2013 2013
Global Engineering & Construction Group $ 8,792 $ 7,756 $ 17,132 $ 15,794 $ 33,067
Global Power Group 5,568 5,200 10,789 10,415 20,958
Corporate & Finance Group   463   498   1,217   2,587   3,549
Total depreciation and amortization $ 14,823 $ 13,454 $ 29,138 $ 28,796 $ 57,574
 
     

Foster Wheeler AG and Subsidiaries

EBITDA, Net Income* and Diluted Earnings Per Share Reconciliation

(in thousands of dollars, except per share amounts)

(unaudited)

     
Quarter Ended June 30,
2014 2013
Diluted Diluted
Earnings Earnings
EBITDA Net Income* Per Share EBITDA Net Income* Per Share
 
As adjusted $ 106,135 $ 86,803 $ 0.86 $ 85,255 $ 54,566 $ 0.54
Adjustments:
Net asbestos-related (provision)/gain (1,209 ) (1,209 ) (0.01 ) 13,750 13,750 0.14
           
As reported from continuing operations $ 104,926   $ 85,594 $ 0.85 $ 99,005   $ 68,316 $ 0.68
As reported from discontinued operations   -     -     2,383     0.03  
As reported $ 85,594   $ 0.85   $ 70,699   $ 0.71  
 
Six Months Ended June 30,
2014 2013
Diluted Diluted
Earnings Earnings
EBITDA Net Income* Per Share EBITDA Net Income* Per Share
 
As adjusted $ 152,905 $ 105,878 $ 1.05 $ 127,333 $ 73,470 $ 0.72
Adjustments:
Net asbestos-related (provision)/gain (3,217 ) (3,217 ) (0.03 ) 11,750 11,750 0.11
           
As reported from continuing operations $ 149,688   $ 102,661 $ 1.02 $ 139,083   $ 85,220 $ 0.83
As reported from discontinued operations   -     -     (1,495 )   (0.01 )
As reported $ 102,661   $ 1.02   $ 83,725   $ 0.82  
 
 
Twelve Months Ended December 31, 2013
Diluted
Earnings
EBITDA Net Income* Per Share
 
As adjusted $ 250,082 $ 127,115 $ 1.25
Adjustments:
Net asbestos-related provision (30,213 ) (30,213 ) (0.29 )
     
As reported from continuing operations $ 219,869   $ 96,902 $ 0.96
As reported from discontinued operations   265     -  
As reported $ 97,167   $ 0.96  
 

_______________

* Net income attributable to Foster Wheeler AG.
 

Foster Wheeler AG and Subsidiaries

Average Calculations

(in thousands of dollars, except per share amounts)

(unaudited)

       
2013

Full Year

2013

Quarterly

Average(1)

Six Months

Ended

June 30, 2014

2014

Quarterly

Average(2)

Consolidated

Operating revenues - in Foster Wheeler Scope (3) $ 2,593,463 $ 648,366 $ 1,347,037 $ 673,519
Income from continuing operations (4) $ 96,902 $ 24,226 $ 102,661 $ 51,331
Adjusted income from continuing operations (4) $ 127,115 $ 31,779 $ 105,878 $ 52,939
Consolidated EBITDA from continuing operations $ 219,869 $ 54,967 $ 149,688 $ 74,844
Consolidated EBITDA from continuing operations, as adjusted $ 250,082 $ 62,521 $ 152,905 $ 76,453
Adjusted diluted earnings per share $ 1.25 $ 0.31 $ 1.05 $ 0.53
 
 

Global Engineering & Construction Group

New orders booked - in Foster Wheeler Scope $ 2,745,500 $ 686,375 $ 1,030,300 $ 515,150
Operating revenues - in Foster Wheeler Scope $ 1,808,752 $ 452,188 $ 965,165 $ 482,583
EBITDA $ 183,911 $ 45,978 $ 96,463 $ 48,232
EBITDA margin 10.2 % 10.2 % 10.0 % 10.0 %
 
 

Global Power Group

New orders booked - in Foster Wheeler Scope (5) $ 690,600 $ 172,650 $ 569,200 $ 284,600
Operating revenues - in Foster Wheeler Scope (3) $ 784,711 $ 196,178 $ 381,872 $ 190,936
EBITDA $ 147,227 $ 36,807 $ 92,820 $ 46,410
EBITDA margin 18.8 % 18.8 % 24.3 % 24.3 %
____________________

(1)

 

To calculate the quarterly average dollar amounts, the company divided reported annual figures by four.

(2)

To calculate the quarterly average dollar amounts, the company divided reported six-months figures by two.

(3)

The operating revenues represent balances from continuing operations.

(4)

Amounts attributable to Foster Wheeler AG.

(5)

New orders booked balances above include balances for discontinued operations, which were insignificant based on our consolidated and business group balances.

 

 

Source: Foster Wheeler AG

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

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