Foster Wheeler Provides Updated Earnings Guidance and Summary of 2013 Share Repurchase Activity
Foster Wheeler AG (Nasdaq: FWLT) announced today that it expects its
2013 full-year financial results to be unfavorably affected by two
factors that, in aggregate, will likely impact the full-year diluted
earnings per share by approximately $0.11. This impact will be reflected
in the company’s first-quarter 2013 diluted earnings per share, which
are expected to be approximately $0.12, or $0.14 on an adjusted basis
excluding asbestos-related provisions, which are expected to be $0.02
per diluted share.
The items are 1) mark-to-market losses on currency transactions
amounting to approximately $0.07 per diluted share, and 2) an additional
non-cash impairment charge relating to the Camden, New Jersey,
waste-to-energy facility amounting to about $0.04 per diluted share.
The losses on currency transactions resulting from mark-to-market
adjustments are due principally to the decline in the value of the
British pound in relation to the US dollar as of the close of the first
quarter of 2013. The estimates of such impacts on 2013 financial results
are based on currency exchange rates in effect at the end of March 2013;
future changes in exchange rates could affect the company’s financial
results.
As a result of these unfavorable items, Foster Wheeler now expects its
2013 adjusted diluted earnings per share to be flat to moderately below
the company’s 2012 adjusted diluted earnings per share of $1.54 (as
detailed in the table below).
The company reaffirmed its previous full-year guidance regarding scope
revenues, EBITDA margins on scope revenues and EBITDA for its two
business groups. That guidance was issued on March 1, 2013.
The company has invested $100 million to purchase its shares from
January 2013 through April 2013.
The company plans to report its financial results for the first quarter
of 2013 on May 2.
Reconciliation of Diluted Earnings per
Share for the Twelve Months Ending December 31, 2012
|
|
|
Diluted earnings per share
|
As adjusted
|
|
$1.54
|
Net asbestos-related provision
|
|
(0.27)
|
As reported
|
|
$1.27
|
Foster Wheeler AG is a global engineering and construction company and
power equipment supplier delivering technically advanced, reliable
facilities and equipment. The company employs approximately 13,000
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 Reading, United Kingdom. For
more information about Foster Wheeler, please visit our Web site at www.fwc.com.
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, benefits, effects or
results of the Company’s 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, the 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 the Company’s global operations, currency fluctuations, war,
terrorist attacks and/or natural 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 the Company’s
patents and other intellectual property rights, increasing global
competition, compliance with its debt covenants, recoverability of
claims against the Company’s 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 or furnished with the Securities and Exchange Commission.