Foster Wheeler Lifts Full-year Outlook As Q2 Profit Beats View

(RTTNews) - Engineering and construction contractor Foster Wheeler AG (FWLT) on Thursday reported a profit for the second quarter that more than doubled from last year, reflecting an asbestos-related gain that more than offset lower revenues.

Adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company raised its earnings outlook for fiscal 2013. Shares of the company are gaining more than 10 percent in the regular trading session.

Segment wise, Global Engineering & Construction Group revenues for the quarter edged down less than 1 percent to $662.72 million, while Foster Wheeler Scope revenues rose 6 percent to $443.49 million. Global Power Group revenues declined 26 percent to $200.69 million.

Switzerland-based Foster Wheeler's net income for the second quarter was $70.70 million or $0.71 per share, up from $30.86 million or $0.29 per share in the same period last year.

The latest quarter's results include net asbestos-related gain of $13.75 million or $0.14 per share, compared to net-asbestos related provision of $3.71 million or $0.03 per share in the prior-year period.

Excluding items, adjusted income from continuing operations for the quarter was $54.57 million or $0.54 per share, compared with $33.70 million or $0.32 per share in the year-ago quarter. On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter declined 11 percent to $863.41 million from $936.46 million in the prior-year quarter. Analysts had a consensus revenue estimate of $881.96 million.

Kent Masters, Chief Executive Officer of Foster Wheeler's said, "Our adjusted income from continuing operations in the second quarter of 2013 was 22% above the average quarter of 2012, due largely to the strong performance of our Global Engineering and Construction (E&C) Group, which reported a 29% increase in EBITDA and a 12% increase in scope revenues."

Looking ahead to fiscal 2013, Foster Wheeler raised its earnings outlook, due in part to its strong performance in the second quarter of 2013. The company now expects adjusted earnings per share from continuing operations for the year to be moderately above $1.54. Earlier, the company forecast earnings to be flat to moderately below $1.54.

Analysts expect the company to report earnings of $1.40 per share for the year.

In Thursday's regular trading session, FWLT is trading at $23.95, up $2.20 or 10.10 percent on a volume of 857,224 shares.