Forum Energy Technologies, Inc. (NYSE: FET) announced today that fourth quarter 2013 adjusted earnings per share (a non-GAAP financial measure) are estimated to be between $0.36 and $0.38. This is below the company’s previous guidance range of $0.42 to $0.46. The company indicated the lower fourth quarter 2013 adjusted earnings per share is primarily the result of three factors, each of which had a $0.02 to $0.03 impact on adjusted earnings per share:
- Severe winter storms affected production at seven Forum manufacturing facilities in North Texas and Oklahoma, and the delivery of product and equipment to customers in the United States.
- Delays in the delivery of several remotely operated vehicles (ROVs) and major components until the first quarter of 2014 reduced the revenue expected to be recognized in the fourth quarter. Also, a large order for new ROVs was received later in the fourth quarter than expected, reducing the amount of revenue recognized in the quarter.
- Cost overruns and low margins were incurred on the initial orders for certain newly designed, large drilling capital equipment items for international markets due to incremental engineering and start-up manufacturing costs.
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