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Foster Wheeler Reports Results For Third Quarter Of 2012

Also contributing to the improvement in adjusted net income in the third quarter of 2012 was an effective tax rate that was below the average 2011 rate.

Global Engineering and Construction (E&C) Group

                                 
(dollars in millions)       Q3 2012       Qtrly Avg. 2012       Q3 2011       Qtrly Avg. 2011
New orders booked (FW Scope)       $769       $510       $309       $362
Operating revenues (FW Scope)       $380       $387       $418       $399
Segment EBITDA       $52       $46       $59       $53
EBITDA Margin (FW Scope)       13.7%       11.9%       14.0%       13.2%
  • Scope new orders in the third quarter of 2012 reached a record level due to a robust mix of bookings that included two large contracts for projects in Brazil and Venezuela.
  • Scope operating revenues in the third quarter of 2012 were below the average quarter of 2011 due to delays in contract awards during the first half of 2012.
  • EBITDA in the third quarter of 2012 was comparable to the average quarter of 2011 as increased profit on work executed was partially offset by the impact of an unfavorable utilization rate and higher sales pursuit costs.

Global Power Group (GPG)

                                 
(dollars in millions)       Q3 2012       Qtrly Avg. 2012       Q3 2011       Qtrly Avg. 2011
New orders booked (FW Scope)       $184       $153       $77       $313
Operating revenues (FW Scope)       $223       $253       $247       $257
Segment EBITDA       $65       $54       $35       $46
EBITDA Margin (FW Scope)       29.2%       21.3%       14.3%       17.9%
  • Scope new orders in the third quarter of 2012 were below the average quarter of 2011, reflecting slippage of award dates for committed key prospects.
  • Scope operating revenues in the third quarter of 2012 were below the average quarter of 2011, primarily as a result of delays in contract awards.
  • EBITDA in the third quarter of 2012 was well above the average quarter of 2011, aided by profit enhancement opportunities and royalty fees.

Outlook/Guidance

Masters said, “In our Global Power Group, we are raising our full-year 2012 EBITDA margin guidance to 20% to 22%. We are maintaining our previous guidance on full-year scope revenues in GPG, specifically that we expect them to be essentially flat in 2012 as compared to 2011.”

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