Exhibit 99.1
FOSTER WHEELER REPORTS RESULTS FOR THIRD QUARTER OF 2012
| · | Fully diluted earnings per share of $0.54 |
| · | 43% increase in net income compared with average quarter of 2011 |
| · | Record-level of scope new orders in Global E&C Group |
| · | 31% sequential-quarter increase in scope backlog in Global E&C Group, to $1.7 billion |
| · | Very strong EBITDA margin on scope revenues in Global Power Group |
ZUG, SWITZERLAND, November 9, 2012 -- Foster Wheeler AG (Nasdaq: FWLT) today reported net income for the third quarter of 2012 of $58.2 million, or $0.54 per diluted share, compared with $36.9 million, or $0.31 per diluted share, in the third quarter of 2011.
Net income in both quarterly periods was impacted by asbestos-related provisions as detailed in an attached table. Excluding such items from both quarterly periods, net income in the third quarter of 2012 was $60.2 million, or $0.56 per diluted share, compared with $38.8 million, or $0.33 per diluted share, in the year-ago quarter.
For the first nine months of 2012, net income was $129.7 million, or $1.20 per diluted share, compared with $123.1 million, or $1.01 per diluted share, for the first nine months of 2011.
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) | Q3 2012 | Qtrly Avg. 2012 | Q3 2011 | Qtrly Avg. 2011 |
| Net income | $58 | $43 | $37 | $41 |
| Net income, as adjusted | $60 | $46 | $39 | $43 |
Foster Wheeler’s Chief Executive Officer, Kent Masters, said, “The company’s net income increased 43% in the third quarter of 2012 as compared with the average quarter of 2011 due largely to the performance of our Global Power Group, which reported a sharp increase in EBITDA and very strong margins. Additionally, our Global Engineering and Construction Group booked a record-level of scope new orders, which generated a 31% sequential-quarter increase in scope backlog to more than $1.7 billion.”
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.”
He continued, “In our Global E&C Group, we are maintaining our full-year 2012 EBITDA margin guidance at 11% to 13%, but we are lowering our expectation regarding full-year scope revenues in our E&C Group, now expecting that they will be essentially flat in 2012 as compared to 2011.”
Masters said, “We continue to expect that our full-year earnings per share in 2012 will be materially higher than 2011.”
Share Repurchase Program
The company repurchased 1,944,210 shares during the third quarter of 2012 for approximately $40 million. As of September 30, 2012, the company had approximately $460 million remaining under its authorized share repurchase program.
Conference Call Information
Foster Wheeler AG plans to hold a conference call today, Friday, November 9, at 4:00 p.m. Central European Time (10:00 a.m. Eastern Standard Time in the U.S.) to discuss its financial results for the third quarter ended September 30, 2012. The call will be accessible to the public by telephone or webcast, and the company will post an accompanying slide presentation in the investor relations section of its website (www.fwc.com). To listen to the call by telephone, dial 973-935-8752 (conference I.D. No. 33934876) approximately ten minutes before the call. The conference call will also be available over the Internet at www.fwc.com or through StreetEvents atwww.streetevents.com. A replay of the call will be available on the company's web site for four weeks following the call.
Net Income
All references to net income in this news release refer to “Net income attributable to Foster Wheeler AG” as reported in our consolidated financial statements.
Calculation of EBITDA
EBITDA is a supplemental financial measure not defined in generally accepted accounting principles, or 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 credit agreement use an adjusted form of EBITDA such that in the covenant calculations the EBITDA as presented herein is adjusted for certain unusual and infrequent items specifically excluded in the terms of our senior credit agreement. 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 deliveringtechnically advanced, reliable facilities and equipment. The company employs approximately 12,000 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, mining 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 Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site atwww.fwc.com.
# # #
12-601
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, and the following, could cause the Company’s business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company’s redomestication to Switzerland, the benefits, effects or results of its strategic renewal initiative, further 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, 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 its global operations, currency fluctuations, war , terrorist attacks on and/or 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 its patents and other intellectual property rights, increasing global competition, compliance with its debt covenants, recoverability of claims against its 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.
| Contacts: | | | |
| Media | Julie Stanisz | 908 730 4047 | E-mail: julie_stanisz@fwc.com |
| Investor Relations | Scott Lamb | 908-730-4155 | E-mail: scott_lamb@fwc.com |
| Other Inquiries | | 908 730 4000 | fw@fwc.com |
| Foster Wheeler AG and Subsidiaries |
| Consolidated Statement of Operations |
| (in thousands of dollars, except share data and per share amounts) |
| (unaudited) |
| | | Quarter Ended September 30, | | Nine Months Ended September 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | | |
| Operating revenues | | $ | 803,232 | | | $ | 1,131,856 | | | $ | 2,679,354 | | | $ | 3,351,986 | |
| Cost of operating revenues | | | 649,369 | | | | 995,792 | | | | 2,246,608 | | | | 2,963,055 | |
| Contract profit | | | 153,863 | | | | 136,064 | | | | 432,746 | | | | 388,931 | |
| | | | | | | | | | | | | | | | | |
| Selling, general and administrative expenses | | | 77,631 | | | | 75,087 | | | | 246,339 | | | | 229,330 | |
| Other income, net | | | (14,388 | ) | | | (6,658 | ) | | | (33,143 | ) | | | (42,314 | ) |
| Other deductions, net | | | 8,824 | | | | 8,939 | | | | 25,162 | | | | 21,777 | |
| Interest income | | | (2,470 | ) | | | (5,562 | ) | | | (8,588 | ) | | | (13,265 | ) |
| Interest expense | | | 3,197 | | | | 3,079 | | | | 10,862 | | | | 10,385 | |
| Net asbestos-related provision | | | 2,000 | | | | 1,987 | | | | 7,710 | | | | 4,387 | |
| Income before income taxes | | | 79,069 | | | | 59,192 | | | | 184,404 | | | | 178,631 | |
| Provision for income taxes | | | 16,790 | | | | 16,502 | | | | 43,965 | | | | 42,829 | |
| Net income | | | 62,279 | | | | 42,690 | | | | 140,439 | | | | 135,802 | |
| Less: Net income attributable to noncontrolling interests | | | 4,057 | | | | 5,832 | | | | 10,712 | | | | 12,664 | |
| Net income attributable to Foster Wheeler AG | | $ | 58,222 | | | $ | 36,858 | | | $ | 129,727 | | | $ | 123,138 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
Weighted-average number of shares
outstanding for basic earnings per share | | | 107,065,999 | | | | 118,611,912 | | | | 107,558,489 | | | | 121,852,185 | |
Weighted-average number of shares
outstanding for diluted earnings per share | | | 107,319,962 | | | | 118,801,481 | | | | 107,857,368 | | | | 122,389,634 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.54 | | | $ | 0.31 | | | $ | 1.21 | | | $ | 1.01 | |
| Diluted | | $ | 0.54 | | | $ | 0.31 | | | $ | 1.20 | | | $ | 1.01 | |
Foster Wheeler AG and Subsidiaries
Consolidated Balance Sheet
(in thousands of dollars)
(unaudited)
| | | September 30, | | December 31, |
| | | 2012 | | 2011 |
| ASSETS | | | | | | | | |
| Current Assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 709,370 | | | $ | 718,049 | |
| Short-term investments | | | — | | | | 1,294 | |
| Accounts and notes receivable, net: | | | | | | | | |
| Trade | | | 530,818 | | | | 427,984 | |
| Other | | | 94,152 | | | | 97,495 | |
| Contracts in process | | | 246,414 | | | | 166,648 | |
| Prepaid, deferred and refundable income taxes | | | 65,101 | | | | 62,616 | |
| Other current assets | | | 43,244 | | | | 49,101 | |
| Total current assets | | | 1,689,099 | | | | 1,523,187 | |
| Land, buildings and equipment, net | | | 340,100 | | | | 341,987 | |
| Restricted cash | | | 78,962 | | | | 44,094 | |
| Notes and accounts receivable – long-term | | | 5,488 | | | | 6,210 | |
| Investments in and advances to unconsolidated affiliates | | | 202,717 | | | | 211,109 | |
| Goodwill | | | 112,767 | | | | 112,120 | |
| Other intangible assets, net | | | 65,206 | | | | 74,386 | |
| Asbestos-related insurance recovery receivable | | | 126,421 | | | | 157,127 | |
| Other assets | | | 134,943 | | | | 118,178 | |
| Deferred tax assets | | | 28,749 | | | | 25,482 | |
| TOTAL ASSETS | | $ | 2,784,452 | | | $ | 2,613,880 | |
| LIABILITIES, TEMPORARY EQUITY AND EQUITY | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Current installments on long-term debt | | $ | 12,874 | | | $ | 12,683 | |
| Accounts payable | | | 321,100 | | | | 250,821 | |
| Accrued expenses | | | 232,689 | | | | 237,089 | |
| Billings in excess of costs and estimated earnings on uncompleted contracts | | | 573,815 | | | | 550,746 | |
| Income taxes payable | | | 45,848 | | | | 39,645 | |
| Total current liabilities | | | 1,186,326 | | | | 1,090,984 | |
| Long-term debt | | | 129,082 | | | | 136,428 | |
| Deferred tax liabilities | | | 45,347 | | | | 44,622 | |
| Pension, postretirement and other employee benefits | | | 163,736 | | | | 171,065 | |
| Asbestos-related liability | | | 245,317 | | | | 269,520 | |
| Other long-term liabilities | | | 167,556 | | | | 160,596 | |
| Commitments and contingencies | | | | | | | | |
| TOTAL LIABILITIES | | | 1,937,364 | | | | 1,873,215 | |
| Temporary Equity: | | | | | | | | |
| Non-vested share-based compensation awards subject to redemption | | | 9,645 | | | | 4,993 | |
| TOTAL TEMPORARY EQUITY | | | 9,645 | | | | 4,993 | |
| Equity: | | | | | | | | |
| Registered shares | | | 269,122 | | | | 321,181 | |
| Paid-in capital | | | 261,108 | | | | 606,053 | |
| Retained earnings | | | 829,698 | | | | 699,971 | |
| Accumulated other comprehensive loss | | | (518,004 | ) | | | (530,068 | ) |
| Treasury shares | | | (50,921 | ) | | | (409,390 | ) |
| TOTAL FOSTER WHEELER AG SHAREHOLDERS’ EQUITY | | | 791,003 | | | | 687,747 | |
| Noncontrolling interests | | | 46,440 | | | | 47,925 | |
| TOTAL EQUITY | | | 837,443 | | | | 735,672 | |
| TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY | | $ | 2,784,452 | | | $ | 2,613,880 | |
Foster Wheeler AG and Subsidiaries
Business Segments
(in thousands of dollars)
(unaudited)
| | | Quarter Ended September 30, | | Nine Months Ended September 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| Global Engineering & Construction Group | | | | | | | | | | | | | | | | |
| Backlog - in future revenues | | $ | 2,485,800 | | | $ | 2,224,900 | | | $ | 2,485,800 | | | $ | 2,224,900 | |
| New orders booked - in future revenues | | | 838,000 | | | | 588,100 | | | | 2,007,500 | | | | 1,972,800 | |
| Operating revenues | | | 578,072 | | | | 882,063 | | | | 1,915,087 | | | | 2,597,886 | |
| EBITDA | | | 51,964 | | | | 58,615 | | | | 138,809 | | | | 155,125 | |
| | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope(1): | | | | | | | | | | | | | | | | |
| Backlog - in Foster Wheeler Scope | | | 1,706,800 | | | | 1,461,900 | | | | 1,706,800 | | | | 1,461,900 | |
| New orders booked - in Foster Wheeler Scope | | | 768,600 | | | | 309,200 | | | | 1,531,100 | | | | 1,071,400 | |
| Operating revenues - in Foster Wheeler Scope | | $ | 380,482 | | | $ | 417,836 | | | $ | 1,162,328 | | | $ | 1,141,940 | |
| | | | | | | | | | | | | | | | | |
| Global Power Group | | | | | | | | | | | | | | | | |
| Backlog - in future revenues | | $ | 917,800 | | | $ | 1,050,900 | | | $ | 917,800 | | | $ | 1,050,900 | |
| New orders booked - in future revenues | | | 185,900 | | | | 79,000 | | | | 463,800 | | | | 798,700 | |
| Operating revenues | | | 225,160 | | | | 249,793 | | | | 764,267 | | | | 754,100 | |
| EBITDA | | | 65,148 | | | | 35,312 | | | | 161,314 | | | | 129,511 | |
| | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope(1): | | | | | | | | | | | | | | | | |
| Backlog - in Foster Wheeler Scope | | | 908,300 | | | | 1,041,000 | | | | 908,300 | | | | 1,041,000 | |
| New orders booked - in Foster Wheeler Scope | | | 183,800 | | | | 76,600 | | | | 457,500 | | | | 791,500 | |
| Operating revenues - in Foster Wheeler Scope | | $ | 222,940 | | | $ | 247,389 | | | $ | 757,902 | | | $ | 746,875 | |
| | | | | | | | | | | | | | | | | |
| Corporate & Finance Group(2) | | | | | | | | | | | | | | | | |
| EBITDA | | $ | (25,528 | ) | | $ | (25,267 | ) | | $ | (76,398 | ) | | $ | (70,886 | ) |
| | | | | | | | | | | | | | | | | |
| Consolidated | | | | | | | | | | | | | | | | |
| Backlog - in future revenues | | $ | 3,403,600 | | | $ | 3,275,800 | | | $ | 3,403,600 | | | $ | 3,275,800 | |
| New orders booked - in future revenues | | | 1,023,900 | | | | 667,100 | | | | 2,471,300 | | | | 2,771,500 | |
| Operating revenues | | | 803,232 | | | | 1,131,856 | | | | 2,679,354 | | | | 3,351,986 | |
| EBITDA | | | 91,584 | | | | 68,660 | | | | 223,725 | | | | 213,750 | |
| | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope(1): | | | | | | | | | | | | | | | | |
| Backlog - in Foster Wheeler Scope | | | 2,615,100 | | | | 2,502,900 | | | | 2,615,100 | | | | 2,502,900 | |
| New orders booked - in Foster Wheeler Scope | | | 952,400 | | | | 385,800 | | | | 1,988,600 | | | | 1,862,900 | |
| Operating revenues - in Foster Wheeler Scope | | $ | 603,422 | | | $ | 665,225 | | | $ | 1,920,230 | | | $ | 1,888,815 | |
____________________
| (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. |
Foster Wheeler AG and Subsidiaries
Reconciliations of EBITDA and Foster Wheeler Scope
(in thousands of dollars)
(unaudited)
| | | Quarter Ended September 30, | | Nine Months Ended September 30, | | Twelve
Months Ended |
| | | 2012 | | 2011 | | 2012 | | 2011 | | December 31,
2011 |
| Reconciliation of EBITDA to Net Income(1) | | | | | | |
| EBITDA: | | | | | | | | | | | | | | | | | | | | |
| Global Engineering & Construction Group | | $ | 51,964 | | | $ | 58,615 | | | $ | 138,809 | | | $ | 155,125 | | | $ | 210,541 | |
| Global Power Group | | | 65,148 | | | | 35,312 | | | | 161,314 | | | | 129,511 | | | | 184,467 | |
| Corporate & Finance Group | | | (25,528 | ) | | | (25,267 | ) | | | (76,398 | ) | | | (70,886 | ) | | | (111,779 | ) |
| Consolidated EBITDA | | | 91,584 | | | | 68,660 | | | | 223,725 | | | | 213,750 | | | | 283,229 | |
| Less: Interest expense | | | 3,197 | | | | 3,079 | | | | 10,862 | | | | 10,385 | | | | 12,876 | |
| Less: Depreciation/amortization(2) | | | 13,375 | | | | 12,221 | | | | 39,171 | | | | 37,398 | | | | 49,456 | |
| Less: Provision for income taxes | | | 16,790 | | | | 16,502 | | | | 43,965 | | | | 42,829 | | | | 58,514 | |
| Net income(1) | | $ | 58,222 | | | $ | 36,858 | | | $ | 129,727 | | | $ | 123,138 | | | $ | 162,383 | |
| | | | | | | | | | | | | | | | | | | | | |
| Reconciliation of Foster Wheeler Scope Operating | | | | | | | | | | | | | | | | | | | | |
| Revenues to Operating Revenues | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Global Engineering & Construction Group | | | | | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope operating revenues | | $ | 380,482 | | | $ | 417,836 | | | $ | 1,162,328 | | | $ | 1,141,940 | | | $ | 1,594,992 | |
| Flow-through revenues | | | 197,590 | | | | 464,227 | | | | 752,759 | | | | 1,455,946 | | | | 1,848,087 | |
| Operating revenues | | $ | 578,072 | | | $ | 882,063 | | | $ | 1,915,087 | | | $ | 2,597,886 | | | $ | 3,443,079 | |
| | | | | | | | | | | | | | | | | | | | | |
| Global Power Group | | | | | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope operating revenues | | $ | 222,940 | | | $ | 247,389 | | | $ | 757,902 | | | $ | 746,875 | | | $ | 1,028,176 | |
| Flow-through revenues | | | 2,220 | | | | 2,404 | | | | 6,365 | | | | 7,225 | | | | 9,474 | |
| Operating revenues | | $ | 225,160 | | | $ | 249,793 | | | $ | 764,267 | | | $ | 754,100 | | | $ | 1,037,650 | |
| | | | | | | | | | | | | | | | | | | | | |
| Consolidated | | | | | | | | | | | | | | | | | | | | |
| Foster Wheeler Scope operating revenues | | $ | 603,422 | | | $ | 665,225 | | | $ | 1,920,230 | | | $ | 1,888,815 | | | $ | 2,623,168 | |
| Flow-through revenues | | | 199,810 | | | | 466,631 | | | | 759,124 | | | | 1,463,171 | | | | 1,857,561 | |
| Operating revenues | | $ | 803,232 | | | $ | 1,131,856 | | | $ | 2,679,354 | | | $ | 3,351,986 | | | $ | 4,480,729 | |
_____________
| (1) | Net income attributable to Foster Wheeler AG. |
| | |
| (2) | The depreciation / amortization by business segment: |
| | | Quarter Ended September 30, | | Nine Months Ended September 30, | | Twelve
Months Ended |
| | | 2012 | | 2011 | | 2012 | | 2011 | | December 31,
2011 |
| Global Engineering & Construction Group | | $ | 5,845 | | | $ | 6,059 | | | $ | 16,752 | | | $ | 19,006 | | | $ | 24,867 | |
| Global Power Group | | | 6,874 | | | | 5,532 | | | | 20,468 | | | | 16,547 | | | | 22,116 | |
| Corporate & Finance Group | | | 656 | | | | 630 | | | | 1,951 | | | | 1,845 | | | | 2,473 | |
| Total depreciation / amortization | | $ | 13,375 | | | $ | 12,221 | | | $ | 39,171 | | | $ | 37,398 | | | $ | 49,456 | |
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 September 30, |
| | | 2012 | | 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | Diluted
Earnings | | | | | | | | | | | | Diluted
Earnings | |
| | | | EBITDA | | | | Net Income* | | | | Per Share | | | | EBITDA | | | | Net Income* | | | | Per Share | |
| As adjusted | | $ | 93,584 | | | $ | 60,222 | | | $ | 0.56 | | | $ | 70,647 | | | $ | 38,845 | | | $ | 0.33 | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
Net asbestos-related
provision | | | (2,000 | ) | | | (2,000 | ) | | | (0.02 | ) | | | (1,987 | ) | | | (1,987 | ) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As reported | | $ | 91,584 | | | $ | 58,222 | | | $ | 0.54 | | | $ | 68,660 | | | $ | 36,858 | | | $ | 0.31 | |
| | | Nine Months Ended September 30, |
| | | 2012 | | 2011 |
| | | | | | | | | | | | Diluted
Earnings | | | | | | | | | | | | Diluted
Earnings | |
| | | | EBITDA | | | | Net Income* | | | | Per Share | | | | EBITDA | | | | Net Income* | | | | Per Share | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As adjusted | | $ | 231,435 | | | $ | 137,000 | | | $ | 1.27 | | | $ | 218,137 | | | $ | 127,525 | | | $ | 1.04 | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
Net asbestos-related
provision | | | (7,710 | ) | | | (7,273 | ) | | | (0.07 | ) | | | (4,387 | ) | | | (4,387 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As reported | | $ | 223,725 | | | $ | 129,727 | | | $ | 1.20 | | | $ | 213,750 | | | $ | 123,138 | | | $ | 1.01 | |
| | | Twelve Months Ended |
| | | December 31, 2011 |
| | | | | | | | | | | | Diluted
Earnings | |
| | | | EBITDA | | | | Net Income* | | | | Per Share | |
| | | | | | | | | | | | | |
| As adjusted | | $ | 293,130 | | | $ | 172,284 | | | $ | 1.43 | |
| Adjustments: | | | | | | | | | | | | |
Net asbestos-related
provision | | | (9,901 | ) | | | (9,901 | ) | | | (0.08 | ) |
| | | | | | | | | | | | | |
| As reported | | $ | 283,229 | | | $ | 162,383 | | | $ | 1.35 | |
________________
| *Net income attributable to Foster Wheeler AG. |
Foster Wheeler AG and Subsidiaries
Average Calculations
(in thousands of dollars)
(unaudited)
| | | 2011
Full Year | | 2011
Quarterly
Average(1) | | Nine Months
Ended
September 30,
2012 | | 2012
Quarterly
Average(2) |
| Consolidated | | | | | | | | | | | | | | | | |
| Operating revenues - in Foster Wheeler Scope | | $ | 2,623,168 | | | $ | 655,792 | | | $ | 1,920,230 | | | $ | 640,077 | |
| Net income(3) | | $ | 162,383 | | | $ | 40,596 | | | $ | 129,727 | | | $ | 43,242 | |
| Adjusted net income(3) | | $ | 172,284 | | | $ | 43,071 | | | $ | 137,000 | | | $ | 45,667 | |
| Consolidated EBITDA | | $ | 283,229 | | | $ | 70,807 | | | $ | 223,725 | | | $ | 74,575 | |
| Consolidated EBITDA, as adjusted | | $ | 293,130 | | | $ | 73,283 | | | $ | 231,435 | | | $ | 77,145 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Global Engineering & Construction Group | | | | | | | | | | | | | | | | |
| New orders booked - in Foster Wheeler Scope | | $ | 1,447,200 | | | $ | 361,800 | | | $ | 1,531,100 | | | $ | 510,367 | |
| Operating revenues - in Foster Wheeler Scope | | $ | 1,594,992 | | | $ | 398,748 | | | $ | 1,162,328 | | | $ | 387,443 | |
| Segment EBITDA | | $ | 210,541 | | | $ | 52,635 | | | $ | 138,809 | | | $ | 46,270 | |
| EBITDA margin | | | 13.2 | % | | | 13.2 | % | | | 11.9 | % | | | 11.9 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Global Power Group | | | | | | | | | | | | | | | | |
| New orders booked - in Foster Wheeler Scope | | $ | 1,251,800 | | | $ | 312,950 | | | $ | 457,500 | | | $ | 152,500 | |
| Operating revenues - in Foster Wheeler Scope | | $ | 1,028,176 | | | $ | 257,044 | | | $ | 757,902 | | | $ | 252,634 | |
| Segment EBITDA | | $ | 184,467 | | | $ | 46,117 | | | $ | 161,314 | | | $ | 53,771 | |
| EBITDA margin | | | 17.9 | % | | | 17.9 | % | | | 21.3 | % | | | 21.3 | % |
______________
| (1) To calculate the 2011 quarterly average dollar amounts, the company divided reported annual figures by four. |
| |
| (2) To calculate the 2012 quarterly average dollar amounts, the company divided reported nine-months figures by three. |
| |
| (3) Net income attributable to Foster Wheeler AG. |
