Foster Wheeler profit misses expectations

 
Suzie Neuwirth
US ENGINEERING firm Foster Wheeler yesterday posted a rise in first-quarter profit, but missed market forecasts.

The Nasdaq-listed company, which is being taken over by its UK rival Amec in a $3.3bn (£1.95bn) deal announced earlier this year, said separately that its shareholders have approved a one-time dividend of $0.40 per share, which will be paid out on 21 May.

Adjusted income for the first quarter of 2014 was $19.1m, equating to earnings per share of $0.19, compared with adjusted earnings of $18.9m in the same quarter the previous year. Analysts had estimated earnings of $0.38 per share.

The results were also below the average quarter of last year, due to a 17 per cent drop in operating earnings and a higher tax rate.

“The company’s first-quarter adjusted income was well below what we would expect to see as a quarterly run rate in 2014, a year in which we anticipate that the company’s performance will be driven by sequential-year growth in scope revenues in both of our business groups,” said chief Kent Masters. Shares closed up at $34.34.