FOSTER WHEELER LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME
(In Thousands of Dollars, Except Per Share Amounts)
(Unaudited)
Three Months Ended Six Months Ended
----------------------- ------------------------
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
Revenues: ----------- ----------- ------------ -----------
Operating revenues $ 944,334 $ 826,882 $ 1,739,743 $ 1,509,525
Other income 14,567 13,301 25,187 28,893
----------- ----------- ------------ -----------
Total revenues 958,901 840,183 1,764,930 1,538,418
----------- ----------- ------------ -----------
Costs and expenses:
Cost of operating
revenues 895,547 742,461 1,607,479 1,350,146
Selling, general
and administrative
expenses 57,086 59,644 110,724 111,041
Other
deductions/minority
interest 67,392 13,135 105,641 21,016
Interest expense 15,053 15,434 31,957 32,262
Dividends on
preferred security
of subsidiary trust 4,104 3,938 8,116 7,875
----------- ---------- ------------ -----------
Total costs and
expenses 1,039,182 834,612 1,863,917 1,522,340
----------- ---------- ------------ -----------
(Loss)/earnings before
income taxes (80,281) 5,571 (98,987) 16,078
Provision for income
taxes 4,695 4,782 10,579 7,184
----------- ---------- ------------ -----------
Net (loss)/earnings
prior to cumulative
effect of a change in
accounting principle (84,976) 789 (109,566) 8,894
Cumulative effect on
prior years (to
December 28, 2001)
of a change in
accounting principle
for goodwill, net of
$0 tax - - (73,500) -
----------- ---------- ------------ -----------
Net (loss)/earnings $ (84,976) 789 $ (183,066) 8,894
(Loss)/earnings per
share:
Basic:
Net(loss)/earnings
prior to
cumulative effect
of a change in
accounting
principle $ (2.08) $ 0.02 $ (2.68) $ 0.22
Cumulative effect
on prior years
(to December 28,
2001) of a change
in accounting
principle for - - (1.79) -
goodwill ----------- ---------- ------------ ----------
Net(loss)/
earnings $ (2.08) $ 0.02 $ (4.47) $ 0.22
=========== =========== ============ ===========
Diluted:
Net(loss)/earnings
prior to
cumulative effect
of a change in
accounting
principle $ (2.08) $ 0.02 $ (2.68) $ 0.22
Cumulative effect
on prior years
(to December 28,
2001) of a change
in accounting
principle for - - (1.79) -
goodwill ----------- ---------- ------------ -----------
Net(loss)/
earnings $ (2.08) $ 0.02 $ (4.47) $ 0.22
=========== =========== ============ ===========
Shares outstanding (in
thousands):
Basic: weighted
average number of
shares outstanding 40,945 40,891 40,932 40,863
Diluted: effect of
share options - 360 - 335
----------- ---------- ------------ -----------
Total diluted 40,945 41,251 40,932 41,198
=========== ========== ============ ===========
Cash dividends paid
per common share $ - $ 0.06 $ - $ 0.12
=========== =========== ============ ===========
Foster Wheeler Ltd. and Subsidiaries
Major Business Groups
(In Millions of Dollars)
Three Months Ended Six Months Ended
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
----------- ----------- ------------ ------------
(Re- (Re
classified) classified)
Engineering &
Construction (E&C)(6)
Revenues $ 560,167 $ 464,134 $ 981,302 $ 894,504
Gross earnings from
operations 6,015 45,226 46,234 85,111
Interest expense (251) 907 (569) 940
(Loss)/earnings
before income
taxes and
cumulative effect
of a change in
accounting
principle for
goodwill (1) (2) (13,237) 17,223 7,265 36,435
Energy (6)
Revenues $ 411,916 $ 385,005 $ 799,336 $ 666,822
Gross earnings from
operations 43,955 38,696 87,265 73,528
Interest expense 4,357 6,263 11,738 12,554
(Loss)/earnings
before income
taxes and
cumulative effect
of a change in
accounting
principle for
goodwill (1)(2)(3) (18,197) 11,120 (19,971) 20,461
Corporate and
Financial Services (C&F)(5)
Revenues $ (13,182) $ (8,956) $ (15,708) $ (22,908)
Gross earnings from
operations (1,182) 498 (1,235) 740
Interest
expense (4) 15,051 12,202 28,904 26,643
Loss before income
taxes and
cumulative effect
of a change in
accounting
principle for
goodwill (48,847) (22,772) (86,281) (40,818)
Total
Revenues $ 958,901 $ 840,183 $ 1,764,930 $ 1,538,418
Gross earnings from
operations 48,788 84,420 132,264 159,379
Interest
expense (4) 19,157 19,372 40,073 40,137
(Loss)/earnings
before income taxes
and accounting
change (80,281) 5,571 (98,987) 16,078
Provision (benefit)
for income taxes 4,695 4,782 10,579 7,184
Net (loss)/earnings
prior to
cumulative effect
of a change in
accounting
principle (84,976) 789 (109,566) 8,894
Cumulative effect
on prior years of
a change in
accounting
principle for
goodwill(7) - - (73,500) -
----------- ----------- ------------ ------------
Net (loss)/earnings $ (84,976) $ 789 $ (183,066) $ 8,894
=========== =========== ============ ============
(1) Includes in the three and six months ended 2002, claim write-downs
for E&C ($27,200) and for Energy ($20,700).
(2) Includes in the three and six months ended 2002, anticipated loss
on sale of assets for Energy ($31,800 and $50,800).
(3) Includes in the three and six months ended 2001, $5,000 loss on
sale of a hydrogen plant.
(4) Includes dividends on preferred security of subsidiary trust.
(5) Includes intersegment eliminations.
(6) Reflects the reclassification of the Engineering, Procurement and
Construction ("EPC") business in the United States from the E&C
business group to the Energy business group to conform to 2002
presentation. For the three and six months ended June 29, 2001,
revenues of $71,605 and $114,787, respectively, gross earnings
from operations of $4,526 and $5,763, respectively, interest
expense of $257 and $474, respectively and earnings before income
taxes of $3,091 and $2,679, respectively were reclassified from
the E&C group to the Energy group.
(7) Includes a provision for goodwill impairment of $48,700 for E&C
and $24,800 for the Energy Group.
Operating revenues by industry segment for the periods ending
June 28, 2002 and June 28,2001 were as follows:
Three Months Ended Six Months Ended
----------------------- -------------------------
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
----------- ----------- ------------ ------------
Power $ 45,847 $ 83,587 $ 53,805 $ 165,968
Oil and gas/refinery 247,081 187,715 405,168 365,232
Pharmaceutical 105,807 121,079 181,152 192,096
Chemical 37,935 59,031 76,571 106,050
Environmental 88,856 90,760 173,624 168,135
Power production 306,310 300,363 612,309 507,910
Other 112,498 (15,653) 237,114 4,134
----------- ----------- ------------ ------------
Total Operating
Revenues $ 944,334 $ 826,882 $ 1,739,743 $ 1,509,525
=========== =========== ============ ============