Foster Wheeler’s profits have slumped with the company’s income down by half in its third quarter results.
The company announced its income from operations was $25.4million, compared with $48.9million the same time last year.
Shares are currently sitting at an individual price of $0.25, compared to a cost of $0.50 during the third quarter of 2013.
Foster Wheeler’s chief executive officer, Kent Masters, said: “We experienced a moderate reduction in adjusted income from continuing operations in the third quarter of 2014 compared to the average quarter of 2013, due to increased costs incurred on the AMEC transaction and a higher tax rate.
“EBITDA from operations in the third quarter of 2014 was comparable to the average quarter of 2013, with higher EBITDA in our Global Engineering and Construction Group (E&C) driven by increased level of activity, offset by lower EBITDA in our Global Power Group (GPG) due to timing of new orders, mix of work executed and reduced margins.
“Both business groups continue to operate very well in a challenging environment.
“We continue to expect a material increase in scope revenues for E&C in full-year 2014 relative to full-year 2013, with a modest decline in full-year 2014 scope revenues compared to the previous year for GPG due to timing and mix of new orders.”
Foster Wheeler attributed the losses to the scope of new orders in the third quarter and said expectations from prospect awards had been delayed.
Last month, Foster Wheeler was awarded an engineering, procurement and construction contract by ExxonMobil for a refinery upgrade in Belgium.
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