Foster Wheeler Ltd. and Subsidiaries
------------------------------------
Consolidated Statement of Earnings - Summary
--------------------------------------------
(In Thousands of Dollars, Except Per Share Amounts)
---------------------------------------------------
Three months ended Nine months ended
------------------ -----------------
Sept. 24, Sept. 26, Sept. 24, Sept. 26,
2004 2003 2004 2003
---------- ---------- ---------- -----------
Unfilled orders $1,807,601 $2,998,691 $1,807,601 $2,998,691
New orders booked 280,584 582,396 1,617,555 1,705,819
========== ========== ========== ===========
Revenues and other
income:
Operating revenues 720,554 886,573 2,021,932 2,592,903
Other income 11,843 9,625 82,613 49,969
---------- ---------- ---------- -----------
Total revenues and
other income 732,397 896,198 2,104,545 2,642,872
---------- ---------- ---------- -----------
Cost and Expenses:
Cost of operating
revenues 673,487 806,494 1,793,628 2,392,838
Selling, general &
administrative
expenses 54,860 45,978 168,502 145,106
Other deductions 6,680 38,651 32,255 85,569
Loss on equity-for-
debt exchange 174,941 174,941
Minority interest 1,941 738 4,912 5,096
Interest expense 21,722 21,364 63,109 57,196
Mandatorily
redeemable preferred
security
distributions of
subsidiary trust 4,584 13,443
Interest expense on
subordinated
deferrable
interest
debentures 4,752 14,445
---------- ---------- ---------- -----------
Total costs and
expenses 938,383 917,809 2,251,792 2,699,248
---------- ---------- ---------- -----------
Loss before income
taxes (205,986) (21,611) (147,247) (56,376)
Provision for
income taxes 9,484 5,286 42,686 19,679
---------- ---------- ---------- -----------
Net loss (215,470) (26,897) (189,933) (76,055)
========== ========== ========== ===========
Other comprehensive
income / (loss):
Foreign currency
translation
adjustment 7,730 (415) (1,968) (1,131)
Minimum pension
liability adjustment (13,511)
---------- ---------- ---------- -----------
Net comprehensive
loss ($207,740) ($27,312) ($191,901) ($90,697)
---------- ---------- ---------- -----------
Loss per share :
Basic ($5.16) ($0.65) ($4.60) ($1.85)
======= ======= ======= =======
Diluted ($5.16) ($0.65) ($4.60) ($1.85)
======= ======= ======= =======
Shares outstanding (in
thousands) :
Basic: weighted-
average number of
shares outstanding 41,745 41,041 41,285 41,040
Diluted: effect of
share options and
convertible debt * * * *
---------- ---------- ---------- -----------
Total diluted 41,745 41,041 41,285 41,040
========== ========== ========== ===========
See summary of gains and charges for the three and nine months ended
Sept. 2004 and 2003.
* The effect of the share options and convertible debt were not
included in the calculation of diluted earnings per share as they
were antidilutive due to the loss.
Foster Wheeler Ltd. and Subsidiaries
------------------------------------
Major Business Groups
---------------------
( In Thousands of Dollars )
---------------------------
Three months ended Nine months ended
--------------------- ---------------------
Sept. 24, Sept. 26, Sept. 24, Sept. 26,
2004 2003 2004 2003
--------- ---------- ---------- ----------
Engineering and
Construction (1)
-----------------
Unfilled orders $1,268,072 $2,030,418 $1,268,072 $2,030,418
New orders booked 147,410 443,385 1,222,835 1,166,542
Revenues 456,761 575,516 1,303,245 1,587,505
========== ========== ========== ==========
EBITDA 21,105 19,927 112,235 46,985
Less: Interest expense 2,617 308 7,822 2,015
Less:
Depreciation/amortization 1,996 2,501 6,947 7,697
--------- ---------- ---------- ----------
Earnings before income
taxes 16,492 17,118 97,466 37,273
Provision for income taxes 8,890 4,668 31,482 9,848
--------- ---------- ---------- ----------
Net earnings 7,602 12,450 65,984 27,425
--------- ---------- ---------- ----------
Global Power (1)
----------------
Unfilled orders 543,623 972,938 543,623 972,938
New orders booked 135,851 135,190 397,354 532,706
Revenues 282,048 321,384 808,177 1,057,099
========= ========== ========== ==========
EBITDA (1,695) 33,789 67,018 93,955
Less: Interest expense 8,418 5,973 24,872 18,407
Less:
Depreciation/amortization 5,102 5,345 15,310 16,408
--------- ---------- ---------- ----------
Earnings/(loss) before
income taxes (15,215) 22,471 26,836 59,140
Provision for income taxes 5,596 8,444 31,544 21,070
--------- ---------- ---------- ----------
Net earnings/(loss) (20,811) 14,027 (4,708) 38,070
--------- ---------- ---------- ----------
Corporate and Financial
Services (1) (3)
-----------------------
Unfilled orders (4,094) (4,665) (4,094) (4,665)
New orders booked (2,677) 3,821 (2,634) 6,571
Revenues (6,412) (702) (6,877) (1,732)
========= ========== ========== ==========
EBITDA (191,197) (40,542) (224,817) (99,556)
Less: Interest
expense (2) 15,439 19,667 44,860 50,217
Less:
Depreciation/amortization 627 991 1,872 3,016
--------- ---------- ---------- ----------
Loss before income taxes (207,263) (61,200) (271,549) (152,789)
Provision for income
taxes (5,002) (7,826) (20,340) (11,239)
--------- ---------- ---------- ----------
Net loss (202,261) (53,374) (251,209) (141,550)
--------- ---------- ---------- ----------
Consolidated
------------
Unfilled orders 1,807,601 2,998,691 1,807,601 2,998,691
New orders booked 280,584 582,396 1,617,555 1,705,819
Revenues 732,397 896,198 2,104,545 2,642,872
========= ========== ========== ==========
EBITDA (171,787) 13,174 (45,564) 41,384
Less: Interest
expense (2) 26,474 25,948 77,554 70,639
Less:
Depreciation/amortization 7,725 8,837 24,129 27,121
-------- ---------- ---------- ----------
Loss before income
taxes (205,986) (21,611) (147,247) (56,376)
Provision for income
taxes 9,484 5,286 42,686 19,679
-------- ---------- ---------- ----------
Net loss ($215,470) ($26,897) ($189,933) ($76,055)
-------- ---------- ---------- ----------
(1) See summary of gains and charges by group for the three and nine
months ended Sept. 2004 and 2003.
(2) Includes interest expense on subordinated deferrable debentures in
2004 and mandatorily redeemable preferred security
distributions of subsidiary trust in 2003.
(3) Includes intersegment eliminations
Foster Wheeler Ltd.
Summary of gains / (charges)
(In Thousands of Dollars)
-----------------------------------------
Three months ended Sept. 24,
2004
-----------------------------------------
Engineering Global Corporate
Construction Power Financial Total
-----------------------------------------
Gain on asbestos settlements
Gain on sale of assets
Re-evaluation of contract
cost estimates 8,200 (20,500) (12,300)
Restructuring and credit
agreement costs (1,400) (1,400)
Equity for debt exchange
costs (174,900) (174,900)
Severance (700) (100) (800)
Other (1,700) 400 (1,300)
-----------------------------------------
Total $5,800 ($20,100)($176,400)($190,700)
-----------------------------------------
-----------------------------------------
Three months ended Sept. 26,
2003
-----------------------------------------
Engineering Global Corporate
Construction Power Financial Total
-----------------------------------------
Gain/(loss) on sale of assets ($15,100) ($15,100)
Re-evaluation of contract
cost estimates 3,700 (300) 3,400
Recovery of project claims
Restructuring and credit
agreement costs (12,800) (12,800)
Severance 600 (1,200) (500) (1,100)
Increased pension and
postretirement medical costs 600 (1,900) (1,300)
Other 800 800
-----------------------------------------
Total $4,900 ($1,500) ($29,500) ($26,100)
-----------------------------------------
-----------------------------------------
Nine months ended Sept. 24,
2004
-----------------------------------------
Engineering Global Corporate
Construction Power Financial Total
-----------------------------------------
Gain on asbestos settlements $13,400 $13,400
Gain on sale of assets 19,200 19,200
Re-evaluation of contract
cost estimates 51,900 (41,000) 10,900
Restructuring and credit
agreement costs (15,200) (15,200)
Equity for debt exchange
costs (174,900) (174,900)
Severance (1,300) (100) (1,400)
Other (1,700) 3,300 1,600
-----------------------------------------
Total $68,100 ($37,700)($176,800)($146,400)
-----------------------------------------
-----------------------------------------
Nine months ended Sept. 26,
2003
-----------------------------------------
Engineering Global Corporate
Construction Power Financial Total
-----------------------------------------
Gain/(loss) on sale of assets $15,300 ($15,100) $200
Re-evaluation of contract
cost estimates (32,400) (2,300) (34,700)
Recovery of project claims 2,500 2,500
Restructuring and credit
agreement costs (33,300) (33,300)
Severance (3,200) (4,500) (2,000) (9,700)
Increased pension and
postretirement medical costs 2,200 (9,600) (7,400)
Other (4,500) (4,500)
-----------------------------------------
Total ($15,600) ($6,800) ($64,500) ($86,900)
-----------------------------------------
Foster Wheeler Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet
(In Thousands of Dollars, Unaudited)
----------------------
September December
ASSETS 24, 2004 26, 2003
----------------------
Current Assets:
Cash and cash equivalents $286,375 $364,095
Short-term investments 21,246 13,390
Accounts and notes receivable, net 493,567 556,414
Contracts in process and inventories 215,138 173,293
Prepaid, deferred and refundable income
taxes 22,483 37,160
Prepaid expenses 28,476 30,024
----------------------
Total current assets 1,067,285 1,174,376
----------------------
Land, buildings and equipment 603,477 622,729
Less accumulated depreciation 324,301 313,114
----------------------
Net book value 279,176 309,615
Restricted cash 64,259 52,685
Notes and accounts receivable - long-term 11,272 6,776
Investment and advances 101,547 98,651
Goodwill, net 51,060 51,121
Other intangible assets, net 68,673 71,568
Prepaid pension cost and related benefit
assets 6,695 7,240
Asbestos-related insurance recovery receivable 398,992 495,400
Other assets 156,166 182,151
Deferred income taxes 63,219 56,947
----------------------
TOTAL ASSETS $2,268,344 $2,506,530
----------------------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Current installments on long-term debt $23,918 $20,979
Bank loans 121
Accounts payable 234,212 305,286
Accrued expenses 352,276 381,376
Estimated costs to complete long-term
contracts 477,899 552,754
Advance payments by customers 119,582 50,248
Income taxes 71,467 62,996
----------------------
Total current liabilities 1,279,354 1,373,760
----------------------
Corporate and other debt less current
installments 285,124 333,729
Special-purpose project debt less current
installments 109,026 119,281
Capital lease obligations 63,789 62,373
Deferred income taxes 8,735 9,092
Pension, postretirement and other employee
benefits 287,424 295,133
Asbestos-related liability 436,490 526,200
Other long-term liabilities and minority
interest 123,132 124,792
Subordinated Robbins exit funding obligations
less current installment 20,827 111,589
Convertible subordinated notes 3,070 210,000
Mandatorily redeemable preferred securities of
subsidiary trust holding solely junior subordinated
deferrable interest debentures 175,000
Deferred accrued mandatorily redeemable
preferred security distributions of
subsidiary trust 38,021
Subordinated deferrable interest debentures 71,250
Deferred accrued interest on subordinated
deferrable interest debentures 21,361
Commitments and contingencies - -
----------------------
TOTAL LIABILITIES 2,709,582 3,378,970
----------------------
Shareholders' Deficit:
Preferred stock 600
Common stock 102,015 40,772
Paid-in capital 763,101 201,841
Accumulated deficit (1,000,987) (811,054)
Accumulated other comprehensive loss (305,967) (303,999)
----------------------
TOTAL SHAREHOLDERS' DEFICIT (441,238) (872,440)
----------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
DEFICIT $2,268,344 $2,506,530
----------------------