Foster Wheeler 3rd-quarter profit drops

Foster Wheeler 3rd-quarter profit falls on currency translation, pensions, taxes

• On 8:52 am EST, Wednesday November 4, 2009

Clinton, N.J. (AP) -- Foster Wheeler AG said Wednesday its third-quarter profit dropped 30 percent as unfavorable currency translations, higher pension costs, increased taxes and lower interest income hurt results.

However, the engineering and construction firm beat Wall Street estimates and its shares jumped in premarket trading.

Net income fell to $90 million, or 71 cents per share, from $127.9 million, or 88 cents per share in the same quarter last year.

Excluding an asbestos-related provision of $1.7 million, or 1 cent per share, the company would have earned $91.7 million, or 72 cents per share. That's down from an adjusted $129.6 million, or 89 cents per share in the third quarter of 2008.

Revenue fell 29 percent to $1.22 billion from $1.72 billion in the year-ago period.

Analysts surveyed by Thomson Reuters expected the company to earn 63 cents per share on revenue of $1.29 billion. Analysts typically exclude one-time charges and gains.

Earnings and revenue were hurt by unfavorable currency translation, reduced interest income, higher pension costs and a higher tax rate.

Raymond J. Milchovich, chairman and CEO, said the "overall market is not as robust as it was in 2007 and early 2008," but Foster Wheeler has a "very robust list of prospects" and has seen strong bookings so far in 2009.

Shares rose $85 cents, or 3 percent, to $30.55 in premarket trading.

Buzz up!