FMC Technologies Inc. has reported a 34% decline in 4Q15 revenue to US$1.4 billion compared to the prior-year quarter.
FMC attributed the decline to the reduction in North American land activity, lower revenues in its Subsea Technologies segment, and the negative impact of the stronger US dollar.
The company recorded total inbound orders of US$833.9 million in the period, including US$490 million in Subsea Technologies orders.
The company’s total revenue for 2015 stood at US$6.4 billion, with an operating profit of US$694.2 million.
FMC said that its full-year results were significantly impacted by the stronger US dollar. Foreign currency negatively impacted revenues by US$652.5 million. The negative foreign currency impact to operating profit was US$72.5 million.
John Gremp, Chairman and CEO of FMC Technologies, said: "Despite 2015 being a challenging year for the industry, we achieved our Subsea Technologies order forecast of at least US$3 billion and successfully delivered full-year subsea margins of 15.1%, excluding charges […] Lower oil prices and greater uncertainty around operator cash flows are driving another year of customer spending reductions […] We remain intensely focused on what we can control and are taking unprecedented restructuring actions across the entire company with a clear plan to lower costs, increase efficiency, and improve execution — steps that will provide sustainable savings and further strengthen our competitive position."
Edited from press release by Callum O'Reilly
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