In a week abundant with quarterly financial reports, Foster Wheeler AG is the latest company to announce its most recent fiscal fortunes. But unlike those industrial gas firms that have demonstrated annual growth, Foster Wheeler has undergone significant financial decline.
Indeed, Foster Wheeler has reported net income for the first quarter of 2011 of $23m, or $0.18 per diluted share, compared with $72.1m, or $0.56 per diluted share, in the first quarter of 2010.
Commenting on the company’s result, Umberto della Sala, Foster Wheeler’s interim CEO, said, “Both of our business groups have continued to operate very well. However, relative to the average quarter of 2010, our net income in the first quarter of 2011 declined, as both business groups reported lower realised EBITDA margins, reflecting the as-booked margins on contracts that were awarded over the course of 2009 and 2010.$quot;
“Also contributing to the decline in net income relative to the average quarter of 2010 were lower volumes in our Global E&C Group and materially lower levels of profit enhancement opportunities in both groups.”
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