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
                     =========== =========== ============ ============