FMC Technologies is moving forward with its aggressive tactics to make more job cuts in Q4 2016, as the company reported a 29% drop in revenue for Q3 2016.
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Illustration of FMC Houston offices, from FMC Flickr. |
“We've been very aggressive as you have seen throughout the last several quarters, and as I mentioned in my comments, we've got more to go obviously in the fourth quarter,” Maryann Mannen, FMC CFO said in the company’s Q3 2016 earnings call to investors.
As of 31 March 2016, had a global workforce of 16,500. However, since then, the company has made several cuts to its workforce, including a global cut of 1000 in Q3, with 175 of those cuts made in Houston, a FMC spokeswoman confirmed; and 700 from its Norway division in April. As of today, FMC’s headcount stands at 14,500, representing about a 12% drop from Q1.
“While we will continue to see further headcount reductions in the fourth quarter, charges related to these actions or reserved for in prior period, we do not anticipate any material restructuring charges for subsea in the fourth quarter,” Mannen said.
The Houston-based company’s revenue for Q3 2016 came in at US$1.1 billion, representing a 29% decrease from Q3 2015, due to lower activity across its segments.
Total inbound orders were $692.2 million, including $401 million in subsea technologies orders. Backlog for the company was $3 billion, including subsea technologies backlog of $2.5 billion.
"We received our second subsea multiphase boosting pump order in the quarter. This award, for Eni's Block 15/06 West Hub Development, further demonstrates our capabilities in this attractive growth segment," Doug Pferdehirt, FMC president and CEO said. "We anticipate that small order intake will continue to improve and that large project orders will follow as operators embrace strategies that improve project economics through the acceleration of time to first oil, schedule certainty, and lower costs."
Looking forward, Mannen said its full-year revenue for subsea technologies is expected to approximate $3.3 billion, which includes the year-to-date impact of $73 million in headwinds from the strength of the US dollar.
“With another quarter of solid execution, we now expect full-year subsea margins to exceed 13%, excluding charges,” Mannen said.
In May, FMC and French firm Technip entered into a US$13 million deal to combine the companies in an all-stock merger transaction that the firms said will "create a global leader that will drive change by redefining the production and transformation of oil and gas." The new company will be called TechnipFMC.
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