Foster
Wheeler Ltd. and Subsidiaries
------------------------------------
Consolidated Statement of Earnings - Summary
--------------------------------------------
(in thousands of
dollars, except share data and per share amounts)
------------------------------------------------------------------
Three months ended
-----------------------------
April 1, 2005 March 26,2004
------------- --------------
Unfilled orders $ 1,914,455
$ 2,138,207
New orders
booked
460,005 629,927
============ =============
Operating
revenues
523,065 666,359
Cost of operating
revenues (445,054) (591,147)
------------ -------------
Contract
profit
78,011 75,212
Selling, general
& administrative
expenses (55,217) (57,184)
Other income 12,510 23,649
Other
deductions
(10,336) (6,117)
Interest
expense
(14,748) (25,432)
Minority
interest
(1,009) (982)
------------ --------------
Income before income
taxes 9,211 9,146
Provision for income
taxes (7,971) (13,444)
------------ -------------
Net income /
(loss)
1,240 (4,298)
============ =============
Other comprehensive
income / (loss):
Foreign currency
translation
adjustment 1,708 (4,004)
------------ -------------
Net comprehensive
income / (loss) $ 2,948 ($8,302)
------------ -------------
Earnings / (loss)
per share :
Basic $ 0.03 ($2.09)
============ =============
Diluted $ 0.02 ($2.09)
============ =============
Shares outstanding
Basic:
weighted-average number of
shares
outstanding 41,753,245 2,052,762
Diluted: effect
of dilutive
securities
(1)
6,345,847 -
------------ -------------
Total
diluted 48,099,092 2,052,762
============ =============
(1) The impact of potentially dilutive securities has been
included in
the calculation
of diluted earnings per share to the extent such
securities are
dilutive.
Major Business Groups
---------------------
( in thousands of dollars )
---------------------------
Three months ended
------------------------------
April 1, 2005 March 26, 2004
---------------
--------------
Engineering and Construction
----------------------------
Unfilled
orders $ 1,345,488
$ 1,324,130
New orders
booked
324,505 473,230
Operating
revenues 330,575 394,519
============== =============
EBITDA
26,269 35,064
Less: Interest
expense
(3,476) (2,276)
Less: Depreciation/amortization (1,832) (2,246)
-------------- -------------
Earnings before
income taxes 20,961 30,542
Provision for
income taxes (5,910) (10,117)
-------------- -------------
Net earnings 15,051 20,425
-------------- -------------
Global Power
------------
Unfilled
orders
617,165 817,455
New orders
booked
182,989 156,690
Operating
revenues
195,057 272,179
============== =============
EBITDA
29,691 20,410
Less: Interest
expense
(7,085) (8,131)
Less:
Depreciation/amortization (4,985) (5,158)
-------------- -------------
Earnings before
income taxes 17,621 7,121
Provision for
income taxes
(7,397) (8,008)
-------------- -------------
Net
earnings/(loss)
10,224 (887)
-------------- -------------
Corporate and Financial Services (1)
-----------------------------------
Unfilled
orders
(48,198) (3,378)
New orders
booked
(47,489) 7
Operating
revenues
(2,567) (339)
==============
=============
EBITDA
(24,777) (12,847)
Less: Interest
expense
(4,187) (15,025)
Less:
Depreciation/amortization
(407) (645)
-------------- -------------
Loss before income
taxes (29,371) (28,517)
Provision for
income taxes
5,336 4,681
-------------- -------------
Net loss
(24,035) (23,836)
-------------- -------------
Consolidated
------------
Unfilled
orders
1,914,455 2,138,207
New orders
booked
460,005 629,927
Operating
revenues
523,065 666,359
============== =============
EBITDA
31,183 42,627
Less: Interest
expense
(14,748) (25,432)
Less:
Depreciation/amortization
(7,224) (8,049)
-------------- -------------
Earnings before
income taxes 9,211 9,146
Provision for
income taxes
(7,971) (13,444)
-------------- -------------
Net earnings /
(loss) $ 1,240 ($4,298)
-------------- -------------
(1) Includes intersegment eliminations
Foster Wheeler Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet
(In Thousands of Dollars)
----------------------
April 1, December 31,
ASSETS 2005 2004 (1)
-----------
-----------
Current Assets:
Cash and cash
equivalents $ 233,977 $
291,567
Short-term
investments
24,859 25,775
Accounts and
notes receivable, net
516,845 506,496
Contracts in
process and inventories
187,955 174,077
Prepaid,
deferred and refundable income
taxes 26,033 26,144
Prepaid
expenses
24,595 25,239
-----------
-----------
Total
current assets 1,014,264
1,049,298
-----------
-----------
Land, buildings and
equipment, net
272,078 280,305
Restricted cash 74,315 72,844
Notes and accounts receivable
- long-term 6,821 7,053
Investment and
advances
165,705 158,324
Goodwill, net
51,515 51,812
Other intangible
assets, net
68,023 69,690
Prepaid pension cost
and related benefit
assets
6,216 6,351
Asbestos-related
insurance recovery
receivable
309,889 332,894
Other assets 120,281 108,254
Deferred income
taxes
50,817 50,714
-----------
-----------
TOTAL
ASSETS $
2,139,924 $ 2,187,539
----------- -----------
LIABILITIES AND
SHAREHOLDERS' DEFICIT
Current Liabilities:
Current
installments on long-term debt $ 35,664 $ 35,214
Accounts
payable
261,013 288,899
Accrued
expenses
312,012 314,529
Estimated costs
to complete long-term
contracts
451,022 458,421
Advance payments
by customers 109,778 111,300
Income
taxes
57,512 53,058
-----------
-----------
Total
current liabilities 1,227,001
1,261,421
-----------
-----------
Long-term debt
529,576 534,859
Deferred income
taxes
19,995 7,948
Pension, postretirement
and other employee
benefits
273,174 271,851
Asbestos-related
liability
424,395 447,400
Other long-term
liabilities and minority
interest 160,722 166,165
Deferred accrued
interest on subordinated
deferrable interest
debentures 25,549 23,460
Commitments and
contingencies
-----------
-----------
TOTAL LIABILITIES 2,660,412 2,713,104
-----------
-----------
Shareholders'
Deficit:
Preferred
shares
- 1
Common shares 446 405
Paid-in capital 883,127 883,167
Accumulated
deficit
(1,095,108) (1,096,348)
Accumulated other
comprehensive loss
(295,035) (296,743)
Unearned compensation (13,918) (16,047)
-----------
-----------
TOTAL
SHAREHOLDERS' DEFICIT
(520,488) (525,565)
-----------
-----------
TOTAL
LIABILITIES AND SHAREHOLDERS'
DEFICIT $ 2,139,924 $
2,187,539
-----------
-----------
(1) Restated to reflect the correction of an actuarial error
in the
domestic pension
plan valuation as described in the Company's
Report on Form 8K
filed on May 2, 2005.