We put you first. And keep you ahead. PDF
Preview We put you first. And keep you ahead.
FMCTechnologiesInc 1803GearsRoad HoustonTX77067 2815914000 We put you first. And keep you ahead. 2008 ANNUAL REPORT fmctechnologies.com CorporateOffice Form10-K FMCTechnologies,Inc. AcopyoftheCompany’s2008AnnualReportonForm 1803GearsRoad 10-K,asfiledwiththeU.S.SecuritiesandExchange Houston,TX77067 Commission,isavailableatwww.fmctechnologies.com 2815914000 oruponwrittenrequestto: A C BOUT THE OVER FMCTechnologiesgeneratedrecordrevenuesof NamedbyFORTUNEMagazineasAmerica’sMost InvestorRelations FMCTechnologies,Inc. InvestorRelationsmaybecontactedatthe CorporateCommunications $4.6billionin2008,strengtheningourpositionasthe AdmiredOilandGasEquipment,ServiceCompany followingaddress: 1803GearsRoad leadingglobalprovideroftechnologysolutionsand inthreeofthelastfouryears,FMCTechnologiesis Houston,TX77067 servicestotheoilandgasindustry.Supportedbya recognizedasaperformance-basedcompanythat FMCTechnologies,Inc. portfolioofproductsandservicesthatareasdiverse deliversthehighestlevelofquality,integrityand InvestorRelations However,certaininformationrequiredunderPartsII RobertK.Cherry andIIIoftheCompany’s2008AnnualReportonForm asour9,800worldwideemployees,wecontinued reliabilityineverythingwedo. Weunderstandour 1803GearsRoad 10-Khavebeenincorporatedbyreferencefromthe toadvancethecapabilitiesandpossibilitiesofoil customers’businessesandhelpthemovercometheir Houston,TX77067 Company’sProxyStatementforits2009Annual productionthroughthedesignandmanufactureof mostdifficultoperationalchallenges.Bydeveloping 2815914560 MeetingofShareholders. sophisticatedandvalue-addedtechnologies. thetechnologiesandservicesolutionstheyrequireto ir.fmctechnologies.com succeed,wewillcontinuetoputourcustomersfirst. CertificationsrequiredbySection302oftheSarbanes- StockExchange OxleyActof2002,asamended,areattachedas Ourpeopleandourtechnologiescontinuedtosetthe Andkeepthemahead. FMCTechnologiesislistedonthe ExhibitstotheCompany’s2008AnnualReporton standardforreliability,efficiencyandperformancein NewYorkStockExchangeunderthesymbolFTI. Form10-K.FMCTechnologies’CEOtimelysubmitted 2008.Thisincludedthemanufactureofequipment theCEOAnnualCertificationrequiredbySection AnnualMeeting foranumberofglobalprojects,includingsubsea 303A.12(a)oftheNewYorkStockExchangeListed TheAnnualMeetingofStockholderswillbeheldat separationandprocessingsystemsforTotal’sPazflor CompanyManualin2008totheNewYork 11:00a.m.onFriday,May15,2009at: StockExchange. fieldfeaturedonthefrontcover.Othertechnology investmentsrangedfromlightwellintervention TheWoodlandsWaterwayMarriottHotel FMCTechnologieswas systemstoourpatentedliquidnaturalgasoffloading 1601LakeRobbinsDrive incorporatedinDelawarein2000. TheWoodlands,TX77380 arms,aswellasthedesignanddeliveryofourleading Noticeofthemeeting,togetherwithproxy Auditors pumps,wellheads,swiveljointsandmeters. materials,willbemailedtostockholdersinadvance KPMGLLP ofthemeeting. Houston,TX77067 StockTransferAgent Addressstockholderinquiries,includingrequestsfor stocktransfers,to: NationalCityBank CorporateTrustOperations P.O.Box92301 Cleveland,OH44193-0900 Telephone:8006226757 Fax:2162578508 Email: [email protected] AnnualReport2008 Inside ToOurEmployeesandShareholders........................................2 LetterfromtheCFO......................................................................6 BusinessReview EnergyProductionSystems................................................8 EnergyProcessingSystems..............................................16 CoreValues....................................................................................20 BoardofDirectorsandOfficers................................................22 Form10-K......................................................................................24 Financial Highlights (Inmillions,exceptpershareandcommonstockdata) 2007 2008 Totalrevenue $ 3,648.9 $ 4,550.9 Incomefromcontinuingoperations $ 260.6 $ 352.9 Dilutedearningspershare: Incomefromcontinuingoperations $ 1.95 $ 2.72 Financialandotherdata: Commonstockpricerange $ 27.76-$66.86 $ 20.34-$80.86 Net(debt)cash $ 0.2 $ (154.9) Orderbacklog $ 4,490.7 $ 3,651.2 Numberofemployees 8,900 9,800 Revenue: EnergyProductionSystems $ 2,882.2 79% $ 3,670.7 81% EnergyProcessingSystems $ 767.7 21% $ 883.2 19% Eliminations $ (1.0) 0% $ (3.0) 0% Total $ 3,648.9 $ 4,550.9 $3,671 $421 $2,882 $2,250 $288 $1,771 $191 $1,270 $165 $128 $142 $672 $768 $883 $90 $101 $493 $522 $54 $27 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 RevenuebySegment–$M OperatingProfitbySegment–$M EnergyProductionSystems EnergyProcessingSystems 1 FMCTechnologies,Inc. We maintain a STRONG COMPETITIVE ADVANTAGE due to our innovative & sophisticated technology solutions. Fortheseventhstraightyear,FMCTechnologies Wecompletedthespin-offofFoodTechandAirport achievedrecordresults.Revenueincreased Systems,nowJBTCorporation,allowingustobe 25percentto$4.6billion,ledbythegrowthof completelyfocusedonourenergybusinesses.The oursubseasystemsbusiness,andearningsper spin-offwasimplementedthroughatax-free sharefromcontinuingoperationsof$2.72wereup dividendtoallFMCshareholders. 39percentcomparedto2007.Theseandourother financialresultsunderscoretheinvestmentswe Globalsubsearevenuereached$3billionin2008, havemadeinourpeople,facilitiesandtechnology, andduringtheyear,wereceivedordersforatotal andourabilitytodevelopandmaintainstrong of122newsubseaproductiontreesfor38projects customerrelationshipsandlong-termalliances. from22differentcustomers.Theseawardscame Manyofournewtechnologiesenablemoreefficient fromallmajoroffshorebasinsaroundtheworld– andcost-effectiveproductionofoilandgasthatwill theGulfofMexico,theNorthSea,Brazil,West allowFMCtocontinuetosupportourcustomers’ AfricaandtheFarEast. increasingchallengesofdeepwaterdevelopments. IntheGulfofMexico,Shell’sPerdidodevelopment wastheseconddeploymentofFMC’ssubsea separationtechnologiesandthefirstuseofsubsea separationinthisregion.Inaddition,wesetanew worldsubseacompletiondepthrecordof9,356feet (2,850meters)withPerdido,surpassingour previouslyestablishedrecordsetin2007with Anadarko’sIndependenceHubprojectat8,995feet (2,740meters). Brazil GulfofMexico PeterD.Kinnear SubseaProduction–WaterDepthRecords Chairman,PresidentandCEO 2 AnnualReport2008 Wesawthesuccessfulprogressionofseveral Whilesubseasystems,ourlargestandfastest S R previouslyawardedprojectsduringtheyear. growingbusiness,hadanotheroutstandingyear,the E Specifically,webeganworkonourlargestsubsea otherbusinessesinourenergyportfolioalso D L orderever,the$980millionPazflorproject, deliveredsolidperformances.Oursurfacewellhead O operatedoffshoreAngolabyTotal.Thisprojectis businesshadrecordgrowth,withsignificant H E significantduetoitscomplexityaswellassize, increasesinorders,revenueandprofitability. R withthreesubseaseparationsystemsinaddition EnergyProcessing,comprisedofourfluidcontrol, A H to49subseatrees. loadingsystems,measurementsolutionsand S materialhandlingsolutionsbusinesses,setrecord & Anotherimportantdevelopmentwasthesigningof resultsforrevenueandprofitabilityaswell.Notably, severalnewstrategic,multi-yearallianceagreements SamsungandFlexLNGawardedourloading S E withourcustomersAnadarkoPetroleum,Devon systemsbusinessacontractforoffshoreliquefied E Y Energy,LLOGExplorationandNobleEnergy.These naturalgas(LNG)offloading.Thecontractisthe O alliancesbenefitbothFMCandourcustomersby largestreceivedinthehistoryofourloading L providingaframeworkforbudgeting,forecasting, systemsbusiness.Inaddition,ourmaterialhandling P M procurementanddelivery,thusmakingproject solutionsbusinesswasselectedtodesignand E executionmoreefficient.Wearealsoproudofour supplythehandlingsystemsforthePrairieState R continuedlong-termrelationshipswithcustomers, EnergyCampusProjectinIllinois,thelargest U includingBP,Chevron,CNR,ConocoPhillips,Eni, coal-firedpowergenerationplantunder O Hess,Nexen,Petro-Canada,Petrobras,Shell, constructionintheUnitedStates. O StatoilHydro,TotalandWoodsideEnergy. T Topositionthecompanyforfuturegrowth,we purchaseda45percentinterestinSchilling RoboticsLLC,amanufacturerofremotelyoperated vehicles(ROVs),manipulatorsystemsandother high-technologyequipmentusedinsubseaoiland gasexploration.Asmoresubseasystems,suchas subseaprocessingsolutions,areinstalledonthe oceanfloor,weenvisionanincreaseduseofROVs duringthelifeofthesubseafield,includingthe initialinstallation,maintenanceandmonitoringof equipmentontheseabed. Toremainatechnologyleaderandthesupplierof choicetoourcustomers,itisessentialthatwe continuallydevelopnew,innovativeequipment, servicesandsolutionsforourcustomers.FMC currentlyhasmorethan30newsubseatechnologies indifferentstagesofdevelopmentthatwillbenefit ourcustomers.Severalwillbelaunchedin2009. ASchillingRoboticsROVreadytobelaunchedinto thewater. 3 FMCTechnologies,Inc. FMCTechnologieshasalongstandinghistoryof HSEexcellenceisdeeplyembeddedinourcorporate safeoperationthatpromotesemployeehealthand cultureandhasbeenouroperatingmodelfor environmentalstewardship.Wecontinuedthat decades.ItisoneofourCoreValues,alongwith outstandingHealth,SafetyandEnvironmental(HSE) Integrity,Innovation,Collaboration,Respectand performancein2008. Accountability. TwoofthemeasurementsweusetoassessourHSE IformallyintroducedtheseCoreValuestoall progressareRecordableandLostWorkdayIncident employeesinthefourthquarterof2008.Inthis rates,bothcalculatedperevery200,000hours year’sannualreport,Ihavealsodedicatedasection worked.Thesmallerthenumber,thebetterour introducingourvaluestoeveryshareholder.Our performance.Lastyear,ourRecordableIncident CoreValuesrepresentwhatFMCexpectsofeach Ratewas0.57;ourLostWorkdayIncidentRatewas employee.Theyalsoserveasapromiseofwhatour 0.06,farsurpassingtheindustrybenchmarksofthe employees,customers,shareholders,communities top-performingoilandgasservicecompanies.By andsupplierscanexpectfromFMC.Quitesimply, comparison,thesecompaniesexperiencedarateof theyarethefoundationforhowwewillconduct 0.77forrecordableincidentsand0.23forlost business.Theywillserveasaguideforouractions workdayincidents. anddecisionseveryday,andwilldistinguishthe FMCTechnologiesbrandworldwide.Thisincludesa Weestablishednewmetricsforhigh-riskactivities pledgetobeastrongcorporatecitizeninallaspects inanefforttopreventpotentialinjuries,including ofourbusiness. thoseinvolvingpressuretesting.Equipmentsize andpressurescontinuetoincrease,andnew Everyday,ouremployeesaroundtheworldare technologiesarebeingdevelopedtoallow makingalastingimpactonthecommunitiesin customerstoproduceinevenmoredemanding whichtheyliveandwork.Beyondthecommitment operatingenvironments.Itistherefore,both ofdailyworkactivities,theyarereachingoutto practicalandnecessarytoestablishmore theirschools,neighborsandcivicorganizations, comprehensivepressuretestingproceduresthat providingneededservicesandenrichingthelives canimprovesafetyforouremployees,customers ofthosearoundthem. andtheenvironmentsinwhichtheyoperate. 0.80 0.77 0.62 0.57 0.53 0.23 0.17 0.14 0.10 0.06 2005 2006 2007 2008 2008 FMCTechnologies TopOil& GasServiceCo’s Recordable&LostWorkdayIncidentRatesper200,000HoursWorked RecordableIncidents LostWorkdayIncidents 4 AnnualReport2008 SincebecomingCEO,Ihaveencouragedour inaccordancewithourpreviouslyannounced employeestogivetheirtimeandsupporttoanyof successionplan,JosephH.Netherland,after theworthycausesforwhichtheyarepassionate 35years,retiredfromFMCTechnologies. about.Iamveryimpressedwithourglobal Hisleadershipanddedicationwillbemissedby responseasemployeesengagedinnumerous thosewhoworkedwithhim.TheBoardofDirectors charityandoutreachprograms,includingsupport subsequentlyappointedmeChairmanofFMC oflocaleducationforschool-agedchildren, Technologies,apositionInowholdinadditionto sponsorshipofadultliteracyprograms,fundraising mydutiesasPresidentandChiefExecutiveOfficer. forthebenefitoforphanagesandtheeffortto provideguidedogsfortheblind. FMCwasabletogeneraterecordresultsby respondingtocustomerneedsandrecognizingthe While2008wasanoutstandingyear,wemust trendsofourindustry.Oursoundstrategiesand continuallystriveforimprovementsineveryaspect financialdisciplineresultedincompetitive ofourbusiness.Establishingstandardglobal advantagesandsolidifiedourleadershippositionin processes,utilizingbestpracticesandproviding allkeymarketsinwhichweparticipate.Wemust superbprojectexecutionareessentialcomponents continuetomanageourbusinesseswitha tofuturegrowth.Successintheseareaswill dedicationtogrowth,soundfinancialperformance improvequalityandon-timedeliveryandincrease andtechnologyimprovement,andacommitmentto profitability. ourcustomerstodeliverqualityinallaspectsof ourwork. Today,wemaintainastrong,competitiveadvantage becauseofourinnovativeandsophisticated Likeeveryyear,2009willoffernewandunique technologicalsolutions.Aswelookto2009and challengesandopportunities.Bymaintaininga beyond,itisimperativethatwebuilduponthis consistentfocusonflawlessexecution,continuing achievementineveryaspectofourbusiness, toinvestinthedevelopmentofinnovative embeddingaqualityculturethroughoutFMCthat technologiesandensuringwepossessthemost mirrorsourindustry-leadingsafetyperformance. talentedworkforceintheindustry,wewillremain Itisequallyimportanttoensurethatweeliminate positionedtosucceedevenintoday’suncertain inefficienciesfromourprocessesandthatwe businessclimate. continuetodeliversuperiorproductsandservices, ontime,toourcustomers. During2008,wemadeanumberofkey managementappointments.Theseincluded PeterD.Kinnear thepromotionofJayA.NuttasController Chairman,PresidentandCEO ofthecompanyandtheappointmentof FMCTechnologies,Inc. JeffreyS.BeyersdorferasTreasurer.Inaddition, 5 FMCTechnologies,Inc. SUPERIOR PERFORMANCE & INTEGRITY are the guiding principles for our business. 2008wasanotherstrongandprofitableyearfor reduceourdependencyonexternalcreditmarkets, FMCTechnologies.Operatingprofitfrom allowingmanagementtodirectthecashintonew continuingoperationsroseto$506million,a profitableinvestments. 25percentincrease,andincomefromcontinuing Toensureourbusinessesremainprofitable,we operationsincreasedto$353million,a35percent haveprocessesinplacethatmonitorandassessthe improvementovertheprioryear.Earningspershare ongoingprofitabilityandcapitalrequirementsof fromcontinuingoperationsrose39percentto eachoperatingunit.Weexaminetrends,including $2.72,whileafter-taxreturnoninvestment profitability,workingcapital(receivables,inventory, increasedto30percentattheendof2008.Total customeradvancesandpayablesduetosuppliers) companybacklog,agoodindicatoroffuture andcapitalspending.Evaluatingtheseandother revenue,stoodat$3.7billion. performancemetricsallowsustoanticipate AfundamentalreasonforthesuccessofFMClies challengesandreactquicklyandeffectivelywhen inourcapabilitytogenerateoperatingcashflow, opportunitiesarise.Thecomingyearwilllikelytest whichwas$262millionin2008.FMC’sabilityto theseprocesses,giventheexpecteddeclinein generatepositivecashflowisafunctionofthe oilfieldactivity. intrinsicprofitabilityofourproductsandservices andthelimitedamountoffixedandworkingcapital needsofourbusinessunits.Sinceourbusinessesdo notrequirelargeamountsofcapitaltofunction, theyarecapableofgeneratingexcesscashflowin mosteconomicenvironments.Asaresult,we $4.5 $3.7 $2.3 $1.7 $1.3 2004 2005 2006 2007 2008 WilliamH.Schumann,III ExecutiveVicePresidentandCFO Backlog–$B 6 AnnualReport2008 Highreturnsoncapitalindicatethatabusinessis FMCisafinanciallysoundcompanyandispoised T R wellmanagedandpossessesadvantagesoverits tosurvivethischallengingeconomicenvironment. O competition.Employingmorecapitalathigherrates Asalways,ourgoalsaretofurtherstrengthenour P E ofreturncreatesshareholdervalue.During2008,we industryleadershipposition,becomeaneven R usedourexcesscashto: strongercompanyandgenerateexcessfreecash O flow,resultinginanincreaseinshareholdervalue. • Investapproximately$165millionincapital F Webelievewehavethestrategies,disciplineand C expenditurestosustainourcurrentbusinesses peopleinplacetocontinuetoachievethosegoals. andfundtheorganicgrowthofnew businesses,suchaswellinterventionsystems andinvestmentsintechnologydevelopments. • Acquirepartialownershipofnewbusinesses, WilliamH.Schumann,III suchasSchillingRoboticsLLC,tobring ExecutiveVicePresidentandCFO additionalgrowthopportunities. FMCTechnologies,Inc. • Repurchase5.7millionsharesofstocktoreturn capitaltoshareholders. Asyoureviewourfinancialstatements,youwill seethatFMChasaverystrongbalancesheet.We currentlyhaveapproximately$495millionindebt, whichisaverysmallfigureforacompanyofour size.Ourcashlevelatyearendof$340million resultedinanetdebtpositionof$155millionat December31,2008.Our$600millionrevolving creditfacilityhasunusedcapacityof$114million, whichprovidesuswithsufficientliquidity. Moreover,webegan2009byaddinganothercredit facilityof$350milliontoprovideuswithadded flexibility.Duetooursoundbalancesheet,FMCis inaverystrongpositiontoinvestinfuturegrowth opportunities. $542.8 30.3 $179.6 $165.0 23.7 $115.6 16.2 $261.8 13.8 $69.9 $167.6 9.7 $26.9 $51.7 ($79.0) 2004 2006 2007 2008 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 2005 OperatingCashFlow–$M ReturnonInvestment–% CapitalExpenditures–$M 7 FMCTechnologies,Inc. 8
Description:The list of books you might like
