Foster Wheeler AG (FWLT), a provider of construction and engineering services, Wednesday reported a sharp decline in profit for the third quarter, reflecting lower operating revenues and interest income. Adjusted per share earnings, however, topped analysts' estimates.
For the third quarter, net income attributable to the company declined to $90 million or $0.71 per share from $127.92 million or $0.88 per share in the previous year. Results for the quarter include asbestos-related provision of $1.74 million.
On an adjusted basis, net income was $91.74 million or $0.72 per share, down from $129.64 million or $0.89 per share last year.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share. Analysts' estimates typically exclude special items.
Operating revenues for the quarter declined to $1.22 billion from $1.72 billion last year. Analysts estimated a revenue of $1.29 billion for the quarter.
By segment, Global Engineering and Construction Group reported revenues of $1.01 billion, down from $1.29 billion a year ago. Global Power Group operating revenues were $207.03 million, compared to $430.95 million last year.
Selling, general and administrative expenses increased to $75.88 million from $74.83 million a year ago.
Interest income for the quarter declined to $2.70 million from $12.46 million in the previous year.
Provision for income taxes rose to $22.06 million from $21.05 million last year due to higher effective tax rate.
For the nine-month period, net income declined to $285.06 million or $2.24 per share from $426.74 million or $2.94 per share in the same period of the previous year. Operating revenues for the period declined to $3.79 billion from $5.21 billion a year ago.
FWLT last traded on Tuesday at $29.70 on the Nasdaq.
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