Foster Wheeler Reports Results For Fourth Quarter Of 2012

Foster Wheeler AG (Nasdaq: FWLT) today reported net income for the fourth quarter of 2012 of $6.3 million, or $0.06 per diluted share, compared with $39.2 million, or $0.34 per diluted share, in the fourth quarter of 2011.

Net income in both quarterly periods was impacted by net asbestos-related provisions as detailed in an attached table. Excluding such items from both quarterly periods, net income in the fourth quarter of 2012 was $28.9 million, or $0.27 per diluted share, compared with $44.8 million, or $0.39 per diluted share, in the year-ago quarter. For the full year 2012, net income was $136.0 million, or $1.27 per diluted share, compared with $162.4 million, or $1.35 per diluted share, for 2011. Excluding the net asbestos-related provisions from both years, net income for 2012 was $165.9 million, or $1.54 per diluted share, as compared with $172.3 million, or $1.43 per diluted share, in 2011.

The fourth quarter of 2012 also included a non-cash after-tax impairment charge of $11.5 million, or $0.11 per diluted share, on a non-core asset.

The following tables present quarterly and average quarterly data, both as reported and as adjusted (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.
(in millions)   Q4 2012     Qtrly Avg. 2012     Q4 2011     Qtrly Avg. 2011
Net income   $6     $34     $39     $41
Net income, as adjusted   $29     $41     $45     $43
EBITDA   $55     $70     $70     $71
EBITDA, as adjusted   $78     $77     $75     $73

Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “Both of our business groups reported solid operating results. In addition, our Global E&C Group reported several record-level numbers in connection with scope new orders and scope backlog. However, adjusted fully diluted earnings per share of $0.27 were $0.09 below the average quarter of 2011 due largely to the impairment charge on a non-core asset, which in turn contributed to a higher effective tax rate during the quarter.”

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