June 2009 -- Foster Wheeler AG reported net income of $72.9 million, or 57 cents per diluted share, for the first quarter of 2009, compared with $138.1 million, or 95 cents per diluted share, in the first quarter of 2008. First-quarter 2009 consolidated EBITDA was $105.6 million, compared with $195.3 million in the first quarter of 2008.
"Foster Wheeler's net income in the first quarter of 2009 was lower than that of the average quarter of 2008 due to a decline in EBITDA in both of our business groups caused by a combination of factors," Foster Wheeler Chairman and CEO Raymond Milchovich said. "Non-operating items, mainly unfavorable currency translation in our Global Engineering and Construction (E&C) Group, amounted to approximately $29 million relative to the average quarter of 2008. Additionally, the Global E&C Group executed lower volumes of work and experienced unfavorable timing and mix of contracts, and volume-related under-absorption of costs relative to the average quarter of 2008. Our Global Power Group experienced lower volumes of work executed. Finally, our net income for the first quarter of 2009 was unfavorably impacted by an effective tax rate that was higher than the average quarter of 2008."
Although the company recently secured "the largest single contract in terms of man-hours in the company's history," Milchovich noted that "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."
