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The Clinton, New Jersey-based company's first-quarter net income was $74.4 million, compared to $138.5 million in the year-ago quarter. Net income attributable to Foster Wheeler AG was $72.9 million, down from last year's income of $138.1 million. Per share earnings fell to $0.57 from $0.95 in the prior year quarter.
The latest quarter results were unfavorably impacted by an effective tax rate that was higher than the average quarter of 2008.
On an adjusted basis, net income for the latest quarter was $74.6 million or $0.59 per share, compared to $123.9 million or $0.85 per share in the corresponding quarter of the previous year.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share. Analysts' estimates typically exclude special items.
Quarterly operating revenues totaled $1.26 billion, a decline from the previous year's revenue of $1.79 billion, and fell short of eight Wall Street analysts' consensus revenue estimate of $1.51 billion.
The company's Global Engineering & Construction Group or E&C fetched first-quarter operating revenues of $952.4 million, down from $1.39 billion reported a year ago. Operating revenues from the Global Power Group amounted to $312.1 million, compared to $404.7 million in the same quarter of last year.
Foster Wheeler noted that in the first quarter of 2009, it booked the largest single contract in terms of man-hours in the company's history - for engineering, procurement and construction management of a new oil refinery in India. While that contract will be an important contributor to income in future periods, the project was just gearing up at the end of the first quarter and thus did not contribute materially to the company's performance in the period.
Looking ahead, the company said demand for solid-fuel boilers in 2009 appears to be very weak, especially in North America. The results of E&C business are expected to be hurt, at least to a certain degree, due to the increased competitive pressure.
Among Foster Wheeler's rivals, Fluor Corp. (FLR | Quote | Chart | News | PowerRating) is scheduled to report first-quarter results on May 11, with analysts projecting earnings of $0.93 per share on revenues of $5.76 billion.
Another competitor, Jacobs Engineering Group Inc. (JEC | Quote | Chart | News | PowerRating) reported a 10% rise in second-quarter profit, reflecting significant revenue growth. Second-quarter earnings grew to $109.29 million or $0.88 per share from $99.31 million or $0.80 per share in the year-ago quarter. Quarterly revenues grew to $2.98 billion from $2.66 billion in the prior year. Nonetheless, citing near-term complexities and uncertainties in its markets, the company lowered its fiscal-2009 earnings forecast.
Foster Wheeler shares, which have been trading between $12.73 and $79.97 in the past 52 weeks, closed Tuesday's trading session at $24.04.
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