Finances stabilise at Foster Wheeler
By Sarah Ann McCay08 May 2014
Foster Wheeler AG announced it was ‘encouraged’ by a rebound in finances for the first quarter of 2014.
The US contractor filed income of US$ 17.1 million for Q1 2014, compared with US$ 16.9 million for the first quarter of 2013.
Foster Wheeler had felt the impact of financial adjustments and charges for asbestos-related provisions and corporate restructure throughout 2013. However, the firm expects a rebound in fortunes for 2014.
Foster Wheeler’s CEO, Kent Masters, said, “Our adjusted income for the first quarter of 2014 was below the average quarter of 2013 due to a -17% decline in operating EBITDA from continuing operations and a higher effective tax rate. Nevertheless, we were encouraged to see a sharp rebound in the first quarter of 2014 in scope new orders in the Global Power Group, as compared to the average quarter of 2013. In addition, we reported an -8% reduction in SG&A expenses versus the average quarter of 2013, reflecting our efforts to improve cost effectiveness across the company.”
Masters said, “In accordance with our previous guidance, the company’s first-quarter adjusted income was well below what we would expect to see as a quarterly run rate in 2014, a year in which we anticipate that the company’s performance will be driven by sequential-year growth in scope revenues in both of our business groups. We expect the increased volume to support favourable utilization rates for the balance of the year.”
Foster Wheeler’s Global Engineering and Construction (E&C) Group reported new orders worth US$ 486 million for the first quarter of 2014, up from 2013’s figure of US$ 336 million.
Operating revenue for the sector was US$ 444 million, versus US$ 425 million the year previous. EBITDA stood at US$ 40 million, up from 2013’s US$ 35 million.