WASHINGTON (dpa-AFX) - Oilfield equipment maker FMC Technologies Inc. (FTI), Tuesday said its fourth-quarter profit declined slightly from last year. Earnings were impacted by higher expenses at subsea technologies segment that offset a 36 percent revenue surge.
Earnings for the quarter fell short of analysts' estimate, although revenues came in ahead of expectations.
FMC Technologies also detailed a weak profit outlook for the full-year 2012, but expects a better performance at subsea technologies.
FMC Technologies' revenues for the quarter were boosted with strong performance at all its segments, notably a 38 percent growth at its biggest unit-- subsea technologies.
However, earnings were hurt largely by a $19 million charge on the Laggan-Tormore project, higher-than anticipated charges from West Africa project delays, as well due to increased costs related to the growing workforce.
FMC Technologies Chief Executive John Gremp said the 'fourth quarter Subsea Technologies' margins came in below our guidance due to higher project costs and expenses associated with our growth, which lowered quarterly results.'
The Houston, Texas-based company's attributable profit for the quarter edged down to $99.2 million from $99.3 million last year. Earnings, on a per share basis, remained flat at $0.41 per share year-over-year, due to a lower number of shares outstanding in the recent fourth quarter.
On average, 28 analysts polled by Thomson Reuters expected earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.
FMC Technologies, which provides technology solutions for the energy industry, said sales for the quarter grew 36 percent to $1.50 billion, topping analysts estimate of $1.44 billion. Revenues were up for a straight fourth quarter.
Looking forward to the full year 2012, FMC expects earnings in a range of $2.10 to $2.25 per share. Analysts currently expect earnings of $2.26 per share for the year.
Subsea technologies sales and orders are expected to increase in 2012 with improved operating margins, the company said in the statement.
On February 2, FMC Technologies' larger subsea rival Cameron International Corp. (CAM) reported a profit that beat estimates, on a revenue growth of 12 percent. Nevertheless, the company guided its first-quarter and full-year 2012 below analysts' expectations.
FTI closed Tuesday's trading on the NYSE at $53.77, down $0.59 or 1.09%. The stock further lost $2.18% or 4.05% in after-hours trade.
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