Foster Wheeler AG yesterday reported net income for the second quarter of 2011 of $63.3 million, or $0.52 per diluted share, compared with $58.9 million, or $0.46 per diluted share, in the second quarter of 2010.
The key Q2 stats for the Switzerland-headquartered company are:
- 7% increase in net income versus average quarter of 2010
- 65% increase in EBITDA in Global Power Group versus average quarter of 2010
- 62% increase in scope revenue in Global Power Group versus average quarter of 2010
Foster Wheller’s power group fuelled profits, while EBITDA for the company’s EPC business collapsed 36% from Q2 2010 due to low orders, narrow margins and costs associated with an unfavorable utilisation rate.Â
The company also booked a $2 million impairment related to asbestos.
Net income in the second quarter of 2011 was $65.3 million, or $0.53 per diluted share, compared with $61.2 million, or $0.48 per diluted share, in the year-ago quarter.
For the first six months of 2011, net income was $86.3 million, or $0.70 per diluted share, compared with $130.9 million, or $1.02 per diluted share, for the first six months of 2010.
Commenting on the market outlook for the company’s EPC and power units, CEO Umberto della Sala said, “Markets seem to be improving for both of our business groups, although the pace of that improvement is slightly better in the power sector. Even so, all of our end markets remain competitive. In our Global E&C Group, we are maintaining full-year EBITDA margin guidance of 13% to 15%, but we still expect to see quarterly volatility, with the third-quarter margin likely lower than the second quarter”.
