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Foster Wheeler 3Q profit beats expectations

The Associated Press

Foster Wheeler AG's third-quarter net income jumped nearly 58 percent as the Swiss engineering and construction company benefited from a strong global power business, new construction orders and a lower tax rate.

The company reported net income of $58.2 million, or 54 cents per share, for the period versus $36.9 million, or 31 cents per share, last year. After adjusting for asbestos-related provisions, it earned 56 cents per share versus 33 cents per share last year.

Earnings per share were helped by a 10 percent reduction in the average number of shares outstanding year over year.

Its revenue slipped to $803.2 million from $1.13 billion.

Analysts polled by FactSet were expecting Foster Wheeler to earn 45 cents per share on revenue of $1.07 billion.

Foster Wheeler still expects its full-year earnings per share for 2012 will come in materially higher than in 2011.

Analysts expect earnings per share of $1.62 for the year, compared with $1.35 per share in 2011, or $1.43 per share adjusted for the asbestos claims.

Shares of the company increased 38 cents, or nearly 2 percent, to close at $22.85. Its shares have traded between $15.26 and $26.08 in the past 52 weeks.