Exhibit 99.2

 

 

Fact Book

Second Quarter 2013

 

Foster Wheeler AG (NASDAQ: FWLT) is a leading engineering and construction company and power equipment supplier.

 

This summary document is designed to be read in conjunction with the company's Form 10-K and Form 10-Q filings. Please see those documents for additional details and important disclosures relating to the financial data in this Fact Book. See appendices and footnotes starting on page 14 of this Fact Book.

 

 

Contents
Consolidated Highlights	3
Business Group Data	4
Backlog:
Global E&C Group	5
Global Power Group	6
Consolidated	7
New Orders Booked:
Global E&C Group	8
Global Power Group	9
Consolidated	10
Consolidated Statement of Operations	11
Consolidated Balance Sheet	12
Consolidated Statement of Cash Flows	13
Appendices and Footnotes	14

 

 

FOSTER WHEELER AG

CONSOLIDATED HIGHLIGHTS

(in thousands of dollars, except share data and ratios)

 

		2013												2012																				2011
		YTD 6/30				Q2 6/30				Q1 3/31				Full Year  2012				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Full Year  2011
Backlog (Future Revenues)		$	3,281,200			$	3,281,200			$	3,460,000			$	3,648,000			$	3,648,000			$	3,403,600			$	3,142,000			$	3,590,400			$	3,626,100
New orders booked (Future Revenues)			1,417,900				751,300				666,600				3,449,500				978,200				1,023,900				613,100				834,300				4,285,800
Operating revenues from continuing operations			1,653,551				863,407				790,144				3,391,394				730,046				797,296				936,462				927,590				4,458,108
Income from continuing operations attributable to FWAG			85,220				68,316				16,904				149,215				18,637				58,667				30,421				41,490				161,054
Income from discontinued operations attributable to FWAG			(1,495	)			2,383				(3,878	)			(13,193	)			(12,342	)			(445	)			438				(844	)			1,329
Net income attributable to Foster Wheeler AG			83,725				70,699				13,026				136,022				6,295				58,222				30,859				40,646				162,383
Diluted earnings per share:
Income from continuing operations attributable to FWAG		$	0.83			$	0.68			$	0.16			$	1.39			$	0.18			$	0.55			$	0.29			$	0.38			$	1.34
Income from discontinued operations attributable to FWAG			(0.01	)			0.03				(0.04	)			(0.12	)			(0.12	)			(0.01	)			-				-				0.01
Net income attributable to Foster Wheeler AG		$	0.82			$	0.71			$	0.12			$	1.27			$	0.06			$	0.54			$	0.29			$	0.38			$	1.35
EBITDA from continuing operations:
Global E&C Group		$	97,321			$	62,133			$	35,188			$	192,208			$	53,399			$	51,964			$	39,917			$	46,928			$	210,541
Global Power Group			70,271				45,584				24,687				204,758				46,223				64,396				42,198				51,941				178,233
C&F Group			(28,509	)			(8,712	)			(19,797	)			(121,453	)			(45,055	)			(25,528	)			(23,592	)			(27,278	)			(111,779	)
EBITDA from continuing operations		$	139,083			$	99,005			$	40,078			$	275,513			$	54,567			$	90,832			$	58,523			$	71,591			$	276,995
Foster Wheeler Scope (FW Scope) 1:
Backlog:		$	2,706,300			$	2,706,300			$	2,765,300			$	2,950,200			$	2,950,200			$	2,615,100			$	2,241,300			$	2,527,300			$	2,562,300
New orders booked			1,157,200				625,600				531,600				2,976,600				988,000				952,400				505,800				530,400				2,699,000
Operating revenues from continuing operations		$	1,266,398			$	642,373			$	624,025			$	2,548,445			$	646,221			$	597,486			$	685,262			$	619,476			$	2,600,547
Key Financial Statistics
Cash and cash equivalents		$	414,738			$	414,738			$	475,716			$	582,322			$	582,322			$	709,370			$	767,259			$	648,904			$	718,049
Total current assets			1,441,684				1,441,684				1,490,873				1,613,542				1,613,542				1,689,099				1,701,813				1,651,747				1,523,187
Total assets			2,564,163				2,564,163				2,600,033				2,733,924				2,733,924				2,784,452				2,741,126				2,734,573				2,613,880
Total current liabilities			1,106,444				1,106,444				1,103,917				1,176,187				1,176,187				1,186,326				1,185,442				1,168,798				1,090,984
Total debt (short and long-term debt)			128,954				128,954				134,714				137,706				137,706				141,956				140,188				151,344				149,111
Total liabilities			1,870,525				1,870,525				1,868,172				1,967,937				1,967,937				1,937,364				1,938,236				1,951,847				1,873,215
Total Foster Wheeler AG shareholders' equity		$	646,946			$	646,946			$	688,288			$	713,990			$	713,990			$	791,003			$	751,907			$	736,518			$	687,747
Current ratio 2			1.30 x				1.30 x				1.35 x				1.37 x				1.37 x				1.42 x				1.44 x				1.41 x				1.40 x
Net working capital 3		$	335,240			$	335,240			$	386,956			$	437,355			$	437,355			$	502,773			$	516,371			$	482,949			$	432,203
Debt-to-total assets ratio			5.0	%			5.0	%			5.2	%			5.0	%			5.0	%			5.1	%			5.1	%			5.5	%			5.7	%

 

1

Definition of Scope: Metrics expressed in Foster Wheeler Scope represent that portion of our operating revenues from continuing operations, new orders booked and backlog on which profit is earned.

Scope excludes revenues relating to third party costs incurred by us as agent or principal on a reimbursable basis ("flow-through" costs).

 

2

Definition of Current Ratio: Current assets divided by current liabilities.

3

Definition of Net Working Capital: Current assets minus current liabilities.

 

NOTE:

The new orders booked and backlog balances above include balances for discontinued operations, which were insignificant based on our consolidated balances.

 

 

FOSTER WHEELER AG

BUSINESS GROUP DATA

(in thousands of dollars)

 

		2013												2012																				2011
		YTD 6/30				Q2 6/30				Q1 3/31				Full Year 2012				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Full Year 2011
Global E&C Group
Operating revenues		$	1,250,693			$	662,719			$	587,974			$	2,419,327			$	504,240			$	578,072			$	666,142			$	670,873			$	3,443,079
Operating revenues (FW Scope)			868,242				443,488				424,754				1,586,198				423,870				380,482				416,830				365,016				1,594,992
EBITDA		$	97,321			$	62,133			$	35,188			$	192,208			$	53,399			$	51,964			$	39,917			$	46,928			$	210,541
EBITDA % of operating revenues			7.8	%			9.4	%			6.0	%			7.9	%			10.6	%			9.0	%			6.0	%			7.0	%			6.1	%
EBITDA % of operating revenues (FW Scope)			11.2	%			14.0	%			8.3	%			12.1	%			12.6	%			13.7	%			9.6	%			12.9	%			13.2	%
New orders booked (Future Revenues)		$	1,128,700			$	661,000			$	467,700			$	2,860,400			$	852,900			$	838,000			$	496,900			$	672,600			$	3,024,900
New orders booked (FW Scope)			872,500				537,000				335,500				2,397,600				866,500				768,600				391,500				371,000				1,447,200
Backlog (Future Revenues)			2,655,200				2,655,200				2,719,100				2,884,700				2,884,700				2,485,800				2,195,200				2,450,800				2,420,200
Backlog (FW Scope)		$	2,089,900			$	2,089,900			$	2,034,100			$	2,196,700			$	2,196,700			$	1,706,800			$	1,304,000			$	1,397,200			$	1,365,900
Global Power Group
Operating revenues		$	402,858			$	200,688			$	202,170			$	972,067			$	225,806			$	219,224			$	270,320			$	256,717			$	1,015,029
Operating revenues (FW Scope)			398,156				198,885				199,271				962,247				222,351				217,004				268,432				254,460				1,005,555
EBITDA		$	70,271			$	45,584			$	24,687			$	204,758			$	46,223			$	64,396			$	42,198			$	51,941			$	178,233
EBITDA % of operating revenues			17.4	%			22.7	%			12.2	%			21.1	%			20.5	%			29.4	%			15.6	%			20.2	%			17.6	%
EBITDA % of operating revenues (FW Scope)			17.6	%			22.9	%			12.4	%			21.3	%			20.8	%			29.7	%			15.7	%			20.4	%			17.7	%
New orders booked (Future Revenues)		$	289,200			$	90,300			$	198,900			$	589,100			$	125,300			$	185,900			$	116,200			$	161,700			$	1,260,900
New orders booked (FW Scope)			284,700				88,600				196,100				579,000				121,500				183,800				114,300				159,400				1,251,800
Backlog (Future Revenues)			626,000				626,000				740,900				763,300				763,300				917,800				946,800				1,139,600				1,205,900
Backlog (FW Scope)		$	616,400			$	616,400			$	731,200			$	753,500			$	753,500			$	908,300			$	937,300			$	1,130,100			$	1,196,400
CONSOLIDATED EBITDA
Global E&C Group		$	97,321			$	62,133			$	35,188			$	192,208			$	53,399			$	51,964			$	39,917			$	46,928			$	210,541
Global Power Group			70,271				45,584				24,687				204,758				46,223				64,396				42,198				51,941				178,233
C&F Group			(28,509	)			(8,712	)			(19,797	)			(121,453	)			(45,055	)			(25,528	)			(23,592	)			(27,278	)			(111,779	)
Total EBITDA from continuing operations		$	139,083			$	99,005			$	40,078			$	275,513			$	54,567			$	90,832			$	58,523			$	71,591			$	276,995

 

NOTE 1:

The operating revenues and EBITDA balances above represent balances from continuing operations.

 

NOTE 2:

The new orders booked and backlog balances above include balances for discontinued operations, which were insignificant based on our consolidated and business group balances.

 

 

FOSTER WHEELER AG

GLOBAL E&C GROUP - BACKLOG

(in millions of dollars)

 

		Q2 2013								Q1 2013				Q4 2012								Q3 2012				Q2 2012				Q1 2012				Q4  2011
Contract Type (FW Scope)
Lump-sum turnkey		$	2.0				0.1	%		$	2.7			$	3.2				0.1	%		$	-			$	-			$	-			$	-				-	%
Other fixed-price			546.2				26.1	%			616.4				662.5				30.2	%			688.9				468.2				523.1				515.4				37.7	%
Reimbursable			1,541.7				73.8	%			1,415.0				1,531.0				69.7	%			1,017.9				835.8				874.1				850.5				62.3	%
Total		$	2,089.9				100.0	%		$	2,034.1			$	2,196.7				100.0	%		$	1,706.8			$	1,304.0			$	1,397.2			$	1,365.9				100.0	%
Project Location (FW Scope)
Africa		$	50.7				2.4	%		$	51.1			$	58.2				2.6	%		$	65.4			$	59.9			$	100.6			$	104.4				7.6	%
Asia Pacific			470.7				22.5	%			472.8				554.7				25.3	%			450.6				298.7				295.8				319.7				23.4	%
Europe			243.8				11.7	%			250.6				226.5				10.3	%			283.1				329.4				369.4				342.4				25.1	%
Middle East			626.0				30.0	%			617.4				671.9				30.6	%			198.5				199.5				211.9				173.1				12.7	%
North America			224.7				10.8	%			139.9				129.5				5.9	%			67.2				100.7				81.3				98.2				7.2	%
South America			474.0				22.7	%			502.3				555.9				25.3	%			642.0				315.8				338.2				328.1				24.0	%
Total		$	2,089.9				100.0	%		$	2,034.1			$	2,196.7				100.0	%		$	1,706.8			$	1,304.0			$	1,397.2			$	1,365.9				100.0	%
Industry (FW Scope)
Power generation		$	2.2				0.1	%		$	1.2			$	31.4				1.4	%		$	46.8			$	52.0			$	61.9			$	47.3				3.5	%
Oil refining			1,301.4				62.3	%			1,313.1				1,421.7				64.7	%			1,002.0				845.5				943.6				949.9				69.5	%
Pharmaceutical			39.2				1.9	%			38.5				26.5				1.2	%			30.4				33.7				28.3				28.0				2.0	%
Oil and gas			263.4				12.6	%			218.3				251.4				11.4	%			183.6				162.4				130.0				134.4				9.8	%
Chemical/petrochemical			417.2				20.0	%			417.2				452.3				20.6	%			424.9				189.3				211.6				178.2				13.0	%
Power plant operation and maintenance			19.8				0.9	%			23.9				0.1				0.0	%			-				-				-				-				-	%
Environmental			3.6				0.2	%			4.1				3.1				0.1	%			3.5				4.1				4.8				3.6				0.3	%
Other, net of eliminations			43.1				2.1	%			17.8				10.2				0.5	%			15.6				17.0				17.0				24.5				1.8	%
Total		$	2,089.9				100.0	%		$	2,034.1			$	2,196.7				100.0	%		$	1,706.8			$	1,304.0			$	1,397.2			$	1,365.9				100.0	%
Backlog (Future Revenues)		$	2,655.2							$	2,719.1			$	2,884.7							$	2,485.8			$	2,195.2			$	2,450.8			$	2,420.2
Global E&C Group man-hours in backlog (in thousands):			17,600								16,200				17,000								13,200				10,300				10,900				11,600

 

 

FOSTER WHEELER AG

GLOBAL POWER GROUP - BACKLOG

(in millions of dollars)

 

		Q2 2013								Q1 2013				Q4 2012								Q3 2012				Q2 2012				Q1 2012				Q4 2011
Contract Type  (FW Scope)
Lump-sum turnkey		$	22.7				3.7	%		$	40.8			$	67.5				9.0	%		$	103.2			$	120.8			$	184.2			$	164.3				13.7	%
Other fixed-price			572.4				92.9	%			668.8				665.2				88.3	%			781.9				790.5				910.7				997.2				83.4	%
Reimbursable			21.3				3.5	%			21.6				20.8				2.8	%			23.2				26.0				35.2				34.9				2.9	%
Total		$	616.4				100.0	%		$	731.2			$	753.5				100.0	%		$	908.3			$	937.3			$	1,130.1			$	1,196.4				100.0	%
Project Location (FW Scope)
Africa		$	0.1				0.0	%		$	-			$	-				-	%		$	-			$	-			$	1.3			$	2.4				0.2	%
Asia Pacific			384.3				62.3	%			464.6				435.4				57.8	%			501.0				532.7				643.5				711.1				59.4	%
Europe			115.4				18.7	%			134.2				150.7				20.0	%			185.7				183.4				251.8				234.5				19.6	%
Middle East			0.8				0.1	%			1.9				4.6				0.6	%			9.3				7.3				11.9				15.0				1.3	%
North America			86.9				14.1	%			105.1				133.0				17.7	%			184.9				186.4				194.6				207.9				17.4	%
South America			28.9				4.7	%			25.4				29.8				4.0	%			27.4				27.5				27.0				25.5				2.1	%
Total		$	616.4				100.0	%		$	731.2			$	753.5				100.0	%		$	908.3			$	937.3			$	1,130.1			$	1,196.4				100.0	%
Industry (FW Scope)
Power generation		$	562.2				91.2	%		$	677.0			$	699.3				92.8	%		$	801.9			$	830.9			$	1,023.7			$	1,090.0				91.1	%
Power plant operation and maintenance			54.2				8.8	%			54.2				54.2				7.2	%			106.4				106.4				106.4				106.4				8.9	%
Total		$	616.4				100.0	%		$	731.2			$	753.5				100.0	%		$	908.3			$	937.3			$	1,130.1			$	1,196.4				100.0	%
Backlog (Future Revenues)		$	626.0							$	740.9			$	763.3							$	917.8			$	946.8			$	1,139.6			$	1,205.9

 

NOTE:

The backlog balances above include balances for discontinued operations, which were insignificant based on our Global Power Group balances.

 

 

FOSTER WHEELER AG

CONSOLIDATED BACKLOG

(in millions of dollars)

 

		Q2 2013								Q1 2013				Q4 2012								Q3 2012				Q2 2012				Q1 2012				Q4 2011
Business Segment (FW Scope)
Global E&C Group		$	2,089.9				77.2	%		$	2,034.1			$	2,196.7				74.5	%		$	1,706.8			$	1,304.0			$	1,397.2			$	1,365.9				53.3	%
Global Power Group			616.4				22.8	%			731.2				753.5				25.5	%			908.3				937.3				1,130.1				1,196.4				46.7	%
Total		$	2,706.3				100.0	%		$	2,765.3			$	2,950.2				100.0	%		$	2,615.1			$	2,241.3			$	2,527.3			$	2,562.3				100.0	%
Contract Type (FW Scope)
Lump-sum turnkey		$	24.7				0.9	%		$	43.5			$	70.7				2.4	%		$	103.2			$	120.8			$	184.2			$	164.3				6.4	%
Other fixed-price			1,118.6				41.3	%			1,285.2				1,327.7				45.0	%			1,470.8				1,258.7				1,433.8				1,512.6				59.0	%
Reimbursable			1,563.0				57.8	%			1,436.6				1,551.8				52.6	%			1,041.1				861.8				909.3				885.4				34.6	%
Total		$	2,706.3				100.0	%		$	2,765.3			$	2,950.2				100.0	%		$	2,615.1			$	2,241.3			$	2,527.3			$	2,562.3				100.0	%
Project Location (FW Scope)
Africa		$	50.8				1.9	%		$	51.1			$	58.2				2.0	%		$	65.4			$	59.9			$	101.9			$	106.8				4.2	%
Asia Pacific			855.0				31.6	%			937.4				990.1				33.6	%			951.6				831.4				939.3				1,030.8				40.2	%
Europe			359.2				13.3	%			384.8				377.2				12.8	%			468.8				512.8				621.2				576.9				22.5	%
Middle East			626.8				23.2	%			619.3				676.5				22.9	%			207.8				206.8				223.8				188.1				7.3	%
North America			311.6				11.5	%			245.0				262.5				8.9	%			252.1				287.1				275.9				306.1				11.9	%
South America			502.9				18.6	%			527.7				585.7				19.9	%			669.4				343.3				365.2				353.6				13.8	%
Total		$	2,706.3				100.0	%		$	2,765.3			$	2,950.2				100.0	%		$	2,615.1			$	2,241.3			$	2,527.3			$	2,562.3				100.0	%
Industry (FW Scope)
Power generation		$	564.4				20.9	%		$	678.2			$	730.7				24.8	%		$	848.7			$	882.9			$	1,085.6			$	1,137.3				44.4	%
Oil refining			1,301.4				48.1	%			1,313.1				1,421.7				48.2	%			1,002.0				845.5				943.6				949.9				37.1	%
Pharmaceutical			39.2				1.4	%			38.5				26.5				0.9	%			30.4				33.7				28.3				28.0				1.1	%
Oil and gas			263.4				9.7	%			218.3				251.4				8.5	%			183.6				162.4				130.0				134.4				5.2	%
Chemical/petrochemical			417.2				15.4	%			417.2				452.3				15.3	%			424.9				189.3				211.6				178.2				7.0	%
Power plant operation and maintenance			74.0				2.7	%			78.1				54.3				1.8	%			106.4				106.4				106.4				106.4				4.2	%
Environmental			3.6				0.1	%			4.1				3.1				0.1	%			3.5				4.1				4.8				3.6				0.1	%
Other, net of eliminations			43.1				1.6	%			17.8				10.2				0.3	%			15.6				17.0				17.0				24.5				1.0	%
Total		$	2,706.3				100.0	%		$	2,765.3			$	2,950.2				100.0	%		$	2,615.1			$	2,241.3			$	2,527.3			$	2,562.3				100.0	%
Consolidated Backlog (Future Revenues)		$	3,281.2							$	3,460.0			$	3,648.0							$	3,403.6			$	3,142.0			$	3,590.4			$	3,626.1

 

NOTE 1:

The above consolidated balances reflect backlog data for both the Global E&C Group and Global Power Group. Please see each group's backlog pages for their respective breakout by Contract Type, Project Location and Industry.

 

NOTE 2:

The backlog balances above include balances for discontinued operations, which were insignificant based on our consolidated and business group balances.

 

 

FOSTER WHEELER AG

GLOBAL E&C GROUP - NEW ORDERS BOOKED

(in millions of dollars)

 

		YTD Q2 2013								Q2 2013				Q1 2013				Full Year 2012								Q4 2012				Q3 2012				Q2 2012				Q1 2012				Full Year 2011
Project Location (FW Scope)
Africa		$	38.3				4.4	%		$	22.3			$	16.0			$	48.4				2.0	%		$	7.2			$	24.2			$	4.3			$	12.7			$	119.2				8.2	%
Asia Pacific			171.2				19.6	%			120.8				50.4				622.8				26.0	%			203.5				226.5				99.4				93.4				366.8				25.3	%
Europe			243.8				27.9	%			121.0				122.8				380.4				15.9	%			56.4				79.4				108.9				135.7				432.7				29.9	%
Middle East			85.9				9.8	%			56.6				29.3				677.9				28.3	%			541.8				48.4				52.8				34.9				136.8				9.5	%
North America			230.4				26.4	%			156.6				73.8				129.9				5.4	%			29.3				12.2				65.2				23.2				124.3				8.6	%
South America			102.9				11.8	%			59.7				43.2				538.2				22.4	%			28.3				377.9				60.9				71.1				267.4				18.5	%
Total		$	872.5				100.0	%		$	537.0			$	335.5			$	2,397.6				100.0	%		$	866.5			$	768.6			$	391.5			$	371.0			$	1,447.2				100.0	%
Industry (FW Scope)
Power generation		$	2.7				0.3	%		$	1.2			$	1.5			$	47.2				2.0	%		$	(1.0	)		$	13.2			$	8.1			$	26.9			$	65.1				4.5	%
Oil refining			382.9				43.9	%			233.9				149.0				1,390.6				58.0	%			648.9				359.9				184.6				197.2				851.4				58.8	%
Pharmaceutical			36.2				4.1	%			21.2				15.0				56.7				2.4	%			10.6				10.7				20.5				14.9				43.7				3.0	%
Oil and gas			193.7				22.2	%			127.0				66.7				275.3				11.5	%			56.2				79.3				106.6				33.2				113.9				7.9	%
Chemical/petrochemical			181.9				20.8	%			108.4				73.5				563.1				23.5	%			135.6				290.2				55.9				81.4				292.9				20.2	%
Power plant operation and maintenance			21.8				2.5	%			10.5				11.3				20.4				0.9	%			5.5				4.0				5.2				5.7				17.8				1.2	%
Environmental			3.6				0.4	%			1.2				2.4				8.5				0.4	%			1.9				1.1				2.1				3.4				6.5				0.4	%
Other, net of eliminations			49.7				5.7	%			33.6				16.1				35.8				1.5	%			8.8				10.2				8.5				8.3				55.9				3.9	%
Total		$	872.5				100.0	%		$	537.0			$	335.5			$	2,397.6				100.0	%		$	866.5			$	768.6			$	391.5			$	371.0			$	1,447.2				100.0	%
New Orders Booked (Future Revenues)		$	1,128.7							$	661.0			$	467.7			$	2,860.4							$	852.9			$	838.0			$	496.9			$	672.6			$	3,024.9

 

NOTE:

Negative balances result when cancellations exceed new orders received in the quarter.

 

 

 

FOSTER WHEELER AG

GLOBAL POWER GROUP - NEW ORDERS BOOKED

(in millions of dollars)

 

		YTD Q2 2013								Q2 2013				Q1 2013				Full Year 2012								Q4 2012				Q3 2012				Q2 2012				Q1 2012				Full Year 2011
Project Location  (FW Scope)
Africa		$	0.1				0.0	%		$	0.1			$	-			$	0.1				0.0	%		$	0.1			$	-			$	-			$	-			$	6.0				0.5	%
Asia Pacific			124.0				43.6	%			7.1				116.9				115.8				20.0	%			23.6				48.9				9.5				33.8				801.1				64.0	%
Europe			70.7				24.8	%			33.4				37.3				199.7				34.5	%			31.9				57.8				30.3				79.7				128.9				10.3	%
Middle East			0.5				0.2	%			0.3				0.2				3.5				0.6	%			0.1				3.1				0.2				0.1				14.2				1.1	%
North America			76.3				26.8	%			38.8				37.5				224.3				38.7	%			54.4				66.1				65.5				38.3				276.9				22.1	%
South America			13.1				4.6	%			8.9				4.2				35.6				6.1	%			11.4				7.9				8.8				7.5				24.7				2.0	%
Total		$	284.7				100.0	%		$	88.6			$	196.1			$	579.0				100.0	%		$	121.5			$	183.8			$	114.3			$	159.4			$	1,251.8				100.0	%
Industry (FW Scope)
Power generation		$	241.5				84.8	%		$	69.1			$	172.4			$	473.6				81.8	%		$	93.3			$	155.8			$	86.4			$	138.1			$	1,143.4				91.3	%
Power plant operation and maintenance			43.2				15.2	%			19.5				23.7				105.4				18.2	%			28.2				28.0				27.9				21.3				108.4				8.7	%
Total		$	284.7				100.0	%		$	88.6			$	196.1			$	579.0				100.0	%		$	121.5			$	183.8			$	114.3			$	159.4			$	1,251.8				100.0	%
New Orders Booked (Future Revenues)		$	289.2							$	90.3			$	198.9			$	589.1							$	125.3			$	185.9			$	116.2			$	161.7			$	1,260.9

 

NOTE: The new orders booked balances above include balances for discontinued operations, which were insignificant based on our Global Power Group balances.

 

 

FOSTER WHEELER AG

CONSOLIDATED NEW ORDERS BOOKED

(in millions of dollars)

 

		YTD Q2 2013								Q2 2013				Q1 2013				Full Year 2012								Q4 2012				Q3 2012				Q2 2012				Q1 2012				Full Year 2011
Business Segment (FW Scope)
Global E&C Group		$	872.5				75.4	%		$	537.0			$	335.5			$	2,397.6				80.5	%		$	866.5			$	768.6			$	391.5			$	371.0			$	1,447.2				53.6	%
Global Power Group			284.7				24.6	%			88.6				196.1				579.0				19.5	%			121.5				183.8				114.3				159.4				1,251.8				46.4	%
Total		$	1,157.2				100.0	%		$	625.6			$	531.6			$	2,976.6				100.0	%		$	988.0			$	952.4			$	505.8			$	530.4			$	2,699.0				100.0	%
Project Location (FW Scope)
Africa		$	38.4				3.3	%		$	22.4			$	16.0			$	48.5				1.6	%		$	7.3			$	24.2			$	4.3			$	12.7			$	125.2				4.6	%
Asia Pacific			295.2				25.5	%			127.9				167.3				738.6				24.8	%			227.1				275.4				108.9				127.2				1,167.9				43.3	%
Europe			314.5				27.2	%			154.4				160.1				580.1				19.5	%			88.3				137.2				139.2				215.4				561.6				20.8	%
Middle East			86.4				7.5	%			56.9				29.5				681.4				22.9	%			541.9				51.5				53.0				35.0				151.0				5.6	%
North America			306.7				26.5	%			195.4				111.3				354.2				11.9	%			83.7				78.3				130.7				61.5				401.2				14.9	%
South America			116.0				10.0	%			68.6				47.4				573.8				19.3	%			39.7				385.8				69.7				78.6				292.1				10.8	%
Total		$	1,157.2				100.0	%		$	625.6			$	531.6			$	2,976.6				100.0	%		$	988.0			$	952.4			$	505.8			$	530.4			$	2,699.0				100.0	%
Industry (FW Scope)
Power generation		$	244.2				21.1	%		$	70.3			$	173.9			$	520.8				17.5	%		$	92.3			$	169.0			$	94.5			$	165.0			$	1,208.5				44.8	%
Oil refining			382.9				33.1	%			233.9				149.0				1,390.6				46.7	%			648.9				359.9				184.6				197.2				851.4				31.5	%
Pharmaceutical			36.2				3.1	%			21.2				15.0				56.7				1.9	%			10.6				10.7				20.5				14.9				43.7				1.6	%
Oil and gas			193.7				16.7	%			127.0				66.7				275.3				9.2	%			56.2				79.3				106.6				33.2				113.9				4.2	%
Chemical/petrochemical			181.9				15.7	%			108.4				73.5				563.1				18.9	%			135.6				290.2				55.9				81.4				292.9				10.9	%
Power plant operation and maintenance			65.0				5.6	%			30.0				35.0				125.8				4.2	%			33.7				32.0				33.1				27.0				126.2				4.7	%
Environmental			3.6				0.3	%			1.2				2.4				8.5				0.3	%			1.9				1.1				2.1				3.4				6.5				0.2	%
Other, net of eliminations			49.7				4.3	%			33.6				16.1				35.8				1.2	%			8.8				10.2				8.5				8.3				55.9				2.1	%
Total		$	1,157.2				100.0	%		$	625.6			$	531.6			$	2,976.6				100.0	%		$	988.0			$	952.4			$	505.8			$	530.4			$	2,699.0				100.0	%
Consolidated New Orders Booked (Future Revenues)		$	1,417.9							$	751.3			$	666.6			$	3,449.5							$	978.2			$	1,023.9			$	613.1			$	834.3			$	4,285.8

 

NOTE 1: The above consolidated balances reflect new orders booked data for both the Global E&C Group and Global Power Group. Please see each group's new orders booked pages for their respective breakout by Contract Type, Project Location and Industry.

 

NOTE 2: The new orders booked balances above include balances for discontinued operations, which were insignificant based on our consolidated and business group balances.

 

 

FOSTER WHEELER AG

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands of dollars, except share data and per share amounts)

 

		2013												2012																				2011
		YTD 6/30				Q2 6/30				Q1 3/31				Full Year 2012				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Full Year 2011
Operating revenues		$	1,653,551			$	863,407			$	790,144			$	3,391,394			$	730,046			$	797,296			$	936,462			$	927,590			$	4,458,108
Cost of operating revenues			1,380,498				709,800				670,698				2,801,351				573,239				643,076				797,529				787,507				3,918,440
Contract profit			273,053				153,607				119,446				590,043				156,807				154,220				138,933				140,083				539,668
Selling, general and administrative expenses			180,133				89,801				90,332				334,075				88,150				77,495				85,289				83,141				309,380
Other income, net			(22,765	)			(18,014	)			(4,751	)			(37,490	)			(4,495	)			(14,342	)			(10,515	)			(8,138	)			(51,457	)
Other deductions, net			15,802				10,490				5,312				34,601				9,539				8,825				12,174				4,063				43,968
Interest income			(2,944	)			(1,482	)			(1,462	)			(10,801	)			(2,218	)			(2,469	)			(2,947	)			(3,167	)			(18,913	)
Interest expense			6,588				3,916				2,672				13,797				2,935				3,197				4,249				3,416				12,876
Net asbestos-related (gain)/provision			(11,750	)			(13,750	)			2,000				30,505				22,795				2,000				3,713				1,997				9,901
Income from continuing operations before income taxes			107,989				82,646				25,343				225,356				40,101				79,514				46,970				58,771				233,913
Provision for income taxes			18,479				13,319				5,160				62,267				18,302				16,790				12,291				14,884				58,514
Income from continuing operations			89,510				69,327				20,183				163,089				21,799				62,724				34,679				43,887				175,399
Income from discontinued operations			(1,495	)			2,383				(3,878	)			(13,193	)			(12,342	)			(445	)			438				(844	)			1,329
Net income			88,015				71,710				16,305				149,896				9,457				62,279				35,117				43,043				176,728
Less: Net income attributable to noncontrolling interests			4,290				1,011				3,279				13,874				3,162				4,057				4,258				2,397				14,345
Net income attributable to Foster Wheeler AG		$	83,725			$	70,699			$	13,026			$	136,022			$	6,295			$	58,222			$	30,859			$	40,646			$	162,383
Basic EPS
Income from continuing operations attributable to FWAG		$	0.83			$	0.68			$	0.16			$	1.39			$	0.18			$	0.55			$	0.29			$	0.38			$	1.34
Income from discontinued operations attributable to FWAG			(0.01	)			0.03				(0.04	)			(0.12	)			(0.12	)			(0.01	)			-				-				0.01
Net income attributable to Foster Wheeler AG		$	0.82			$	0.71			$	0.12			$	1.27			$	0.06			$	0.54			$	0.29			$	0.38			$	1.35
Diluted EPS
Income from continuing operations attributable to FWAG		$	0.83			$	0.68			$	0.16			$	1.39			$	0.18			$	0.55			$	0.29			$	0.38			$	1.34
Income from discontinued operations attributable to FWAG			(0.01	)			0.03				(0.04	)			(0.12	)			(0.12	)			(0.01	)			-				-				0.01
Net income attributable to Foster Wheeler AG		$	0.82			$	0.71			$	0.12			$	1.27			$	0.06			$	0.54			$	0.29			$	0.38			$	1.35
EBITDA from continuing operations		$	139,083			$	99,005			$	40,078			$	275,513			$	54,567			$	90,832			$	58,523			$	71,591			$	276,995
Foster Wheeler AG comprehensive income
Net income attributable to Foster Wheeler AG		$	83,725			$	70,699			$	13,026			$	136,022			$	6,295			$	58,222			$	30,859			$	40,646			$	162,383
Other comprehensive income, net of tax:
Foreign currency translation *			(18,560	)			(4,936	)			(13,624	)			7,579				1,898				14,770				(22,035	)			12,946				(21,694	)
Cash flow hedges			2,427				2,190				237				(1,377	)			693				(1,310	)			(49	)			(711	)			(1,702	)
Pension and other postretirement benefits *			6,280				3,223				3,057				(43,737	)			(52,190	)			2,859				2,886				2,708				(42,168	)
Comprehensive income		$	73,872			$	71,176			$	2,696			$	98,487			$	(43,304	)		$	74,541			$	11,661			$	55,589			$	96,819
EPS Computations:
Income from continuing operations attributable to FWAG		$	85,220			$	68,316			$	16,904			$	149,215			$	18,637			$	58,667			$	30,421			$	41,490			$	161,054
Income from discontinued operations attributable to FWAG			(1,495	)			2,383				(3,878	)			(13,193	)			(12,342	)			(445	)			438				(844	)			1,329
Net income attributable to Foster Wheeler AG		$	83,725			$	70,699			$	13,026			$	136,022			$	6,295			$	58,222			$	30,859			$	40,646			$	162,383
Weighted-average number of shares outstanding for basic EPS			102,182,011				100,001,580				104,386,669				107,054,284				105,552,630				107,065,999				107,840,679				107,774,203				120,085,704
Weighted-average number of shares outstanding for diluted EPS			102,566,647				100,254,752				104,639,999				107,313,539				105,970,858				107,319,962				107,843,255				107,881,807				120,504,483

* Excludes amounts attributable to noncontrolling interest.

 

 

FOSTER WHEELER AG

CONSOLIDATED BALANCE SHEET

(in thousands of dollars)

 

		2013								2012																2011
		Q2 6/30				Q1 3/31				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Q4 12/31
ASSETS
Current Assets:
Cash and cash equivalents		$	414,738			$	475,716			$	582,322			$	709,370			$	767,259			$	648,904			$	718,049
Short-term Investments			-				-				-				-				-				1,334				1,294
Accounts and notes receivable, net:
Trade			645,229				583,025				609,213				529,321				528,091				572,151				426,470
Other			79,883				83,744				86,981				94,150				87,443				100,627				97,449
Contracts in process			200,297				242,919				228,979				246,414				212,209				209,487				166,648
Prepaid, deferred and refundable income taxes			55,438				56,462				57,404				65,101				63,812				65,507				62,616
Other current assets			44,341				47,317				47,138				43,232				41,373				52,283				49,054
Current assets held for sale			1,758				1,690				1,505				1,511				1,626				1,454				1,607
Total current assets			1,441,684				1,490,873				1,613,542				1,689,099				1,701,813				1,651,747				1,523,187
Land, buildings and equipment, net			280,182				277,039				285,402				278,871				271,188				281,528				277,421
Restricted cash			49,417				43,801				62,189				77,946				34,767				37,019				43,726
Notes and accounts receivable - long-term			13,912				13,828				14,119				5,488				6,453				6,478				6,210
Investments in and advances to unconsolidated affiliates			170,641				205,313				205,476				202,717				193,474				212,657				211,109
Goodwill			154,688				141,275				133,518				112,767				110,904				114,286				112,120
Other intangible assets, net			122,078				113,676				105,100				65,206				67,432				72,105				74,386
Asbestos-related insurance recovery receivable			127,362				130,434				132,438				126,421				141,952				148,246				157,127
Long-term assets held for sale			45,219				45,329				49,579				62,245				62,948				63,890				64,934
Other assets			112,445				96,827				90,509				134,943				123,791				122,871				118,178
Deferred tax assets			46,535				41,638				42,052				28,749				26,404				23,746				25,482
TOTAL ASSETS		$	2,564,163			$	2,600,033			$	2,733,924			$	2,784,452			$	2,741,126			$	2,734,573			$	2,613,880
LIABILITIES, TEMPORARY EQUITY AND EQUITY
Current Liabilities:
Current installments on long-term debt		$	13,262			$	13,386			$	13,672			$	12,874			$	12,610			$	13,004			$	12,683
Accounts payable			315,447				283,402				298,411				319,778				342,639				299,159				249,889
Accrued expenses			221,146				207,516				231,602				231,587				222,021				220,449				235,491
Billings in excess of costs and estimated earnings on uncompleted contracts			518,192				537,105				564,356				572,866				570,974				598,303				550,378
Income taxes payable			36,614				60,090				64,992				45,848				34,821				33,858				39,645
Current liabilities held for sale			1,783				2,418				3,154				3,373				2,377				4,025				2,898
Total current liabilities			1,106,444				1,103,917				1,176,187				1,186,326				1,185,442				1,168,798				1,090,984
Long-term debt			115,692				121,328				124,034				129,082				127,578				138,340				136,428
Deferred tax liabilities			44,618				40,265				40,889				45,347				44,502				47,070				44,622
Pension, postretirement and other employee benefits			171,387				173,763				177,345				163,736				165,253				169,557				171,065
Asbestos-related liability			242,874				250,578				259,350				245,317				253,713				262,254				269,520
Other long-term liabilities			189,510				178,321				190,132				167,556				161,748				165,828				160,596
Commitments and contingencies
TOTAL LIABILITIES			1,870,525				1,868,172				1,967,937				1,937,364				1,938,236				1,951,847				1,873,215
Temporary Equity:
Non-vested share-based compensation awards subject to redemption			10,663				8,192				8,594				9,645				8,369				6,295				4,993
TOTAL TEMPORARY EQUITY			10,663				8,192				8,594				9,645				8,369				6,295				4,993
Equity:
Registered shares			270,529				270,179				269,633				269,122				321,646				321,455				321,181
Paid-in capital			275,262				271,947				266,943				261,108				613,453				609,916				606,053
Retained earnings			919,718				849,019				835,993				829,698				771,476				740,617				699,971
Accumulated other comprehensive loss			(577,456	)			(577,933	)			(567,603	)			(518,004	)			(534,323	)			(515,125	)			(530,068	)
Treasury shares			(241,107	)			(124,924	)			(90,976	)			(50,921	)			(420,345	)			(420,345	)			(409,390	)
TOTAL FOSTER WHEELER AG SHAREHOLDERS' EQUITY			646,946				688,288				713,990				791,003				751,907				736,518				687,747
Noncontrolling interests			36,029				35,381				43,403				46,440				42,614				39,913				47,925
TOTAL EQUITY			682,975				723,669				757,393				837,443				794,521				776,431				735,672
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY		$	2,564,163			$	2,600,033			$	2,733,924			$	2,784,452			$	2,741,126			$	2,734,573			$	2,613,880

 

 

FOSTER WHEELER AG

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands of dollars)

 

		YTD 6/30/2013				Full Year 2012				Full Year 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	88,015			$	149,896			$	176,728
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization			28,796				50,234				44,551
Net asbestos-related provision			4,000				30,505				9,915
Share-based compensation expense			9,481				21,623				21,849
Excess tax shortfall related to share-based compensation			88				98				57
Deferred income tax provision/(benefit)			764				(9,669	)			(16,316	)
Loss/(gain) on sale of assets			51				(173	)			(974	)
Dividends, net of equity in earnings of unconsolidated affiliates			35,437				3,012				8,017
Other noncash items, net			55				936				-
Changes in assets and liabilities, net of effects from acquisitions:
(Increase)/decrease in receivables			(18,265	)			(154,035	)			128,672
Net change in contracts in process and billings in excess of costs and estimated earnings on uncompleted contracts			(8,344	)			(57,247	)			(127,789	)
(Decrease)/increase in accounts payable and accrued expenses			(13,405	)			44,845				9,085
Net change in other current assets and liabilities			(34,987	)			23,467				147
Net change in other long-term assets and liabilities			(25,189	)			(11,123	)			(69,996	)
Net cash provided by operating activities — continuing operations			66,497				92,369				183,946
Net cash (used in)/provided by operating activities — discontinued operations			(441	)			932				1,800
Net cash provided by operating activities			66,056				93,301				185,746
CASH FLOWS FROM INVESTING ACTIVITIES
Payments related to acquisition of businesses, net of cash acquired			(50,800	)			(69,675	)			(29,376	)
Change in restricted cash			12,407				(18,135	)			(18,707	)
Capital expenditures			(17,534	)			(34,687	)			(26,219	)
Proceeds from sale of investments and other assets			266				578				2,157
Investments in and advances to unconsolidated affiliates			-				(2,003	)			-
Return of investment from unconsolidated affiliates			87				6,207				2
Purchase of short-term investments			-				-				(1,546	)
Proceeds from sale of short-term investments			-				1,255				-
Net cash used in investing activities — continuing operations			(55,574	)			(116,460	)			(73,689	)
Net cash provided by/(used in) investing activities — discontinued operations			441				(932	)			(1,800	)
Net cash used in investing activities			(55,133	)			(117,392	)			(75,489	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of shares			(150,131	)			(90,976	)			(409,390	)
Distributions to noncontrolling interests			(10,514	)			(18,301	)			(11,373	)
Proceeds from capital contribution from noncontrolling interests			-				-				138
Proceeds from stock options exercised			1,891				807				11,910
Excess tax shortfall related to share-based compensation			(88	)			(98	)			(57	)
Payment of deferred financing costs			-				(3,993	)			-
Repayment of debt and capital lease obligations			(8,010	)			(13,017	)			(12,530	)
Net cash used in financing activities			(166,852	)			(125,578	)			(421,302	)
Effect of exchange rate changes on cash and cash equivalents			(11,655	)			13,942				(28,069	)
Decrease in cash and cash equivalents			(167,584	)			(135,727	)			(339,114	)
Less: Increase/(decrease) in cash and cash equivalents — discontinued operations			-				-				-
Decrease in cash and cash equivalents — continuing operations			(167,584	)			(135,727	)			(339,114	)
Cash and cash equivalents at beginning of year			582,322				718,049				1,057,163
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	414,738			$	582,322			$	718,049

 

 

FOSTER WHEELER AG

APPENDIX 1: EBITDA RECONCILIATION AND FOOTNOTES

(in thousands of dollars)

 

		2013												2012																				2011
		YTD 6/30				Q2 6/30				Q1 3/31				Full Year 2012				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Full Year 2011
EBITDA from continuing operations (1)		$	139,083			$	99,005			$	40,078			$	275,513			$	54,567			$	90,832			$	58,523			$	71,591			$	276,995
Less: Interest expense			6,588				3,916				2,672				13,797				2,935				3,197				4,249				3,416				12,876
Less: Depreciation and amortization			28,796				13,454				15,342				50,234				14,693				12,178				11,562				11,801				44,551
Less: Provision for income taxes			18,479				13,319				5,160				62,267				18,302				16,790				12,291				14,884				58,514
Income from continuing operations (3)			85,220				68,316				16,904				149,215				18,637				58,667				30,421				41,490				161,054
(Loss)/income from discontinued operations (3)			(1,495	)			2,383				(3,878	)			(13,193	)			(12,342	)			(445	)			438				(844	)			1,329
Net income (2)(3)		$	83,725			$	70,699			$	13,026			$	136,022			$	6,295			$	58,222			$	30,859			$	40,646			$	162,383
_____________
(1) EBITDA includes the following:
Net asbestos-related (gain)/provision:
Global E&C Group		$	-			$	-			$	-			$	2,400			$	700			$	-			$	1,700			$	-			$	-
C&F Group			(11,800	)			(13,800	)			2,000				28,100				22,100				2,000				2,000				2,000				9,900
Total		$	(11,800	)		$	(13,800	)		$	2,000			$	30,500			$	22,800			$	2,000			$	3,700			$	2,000			$	9,900
(2) Net income includes the following:
Net asbestos-related (gain)/provision:
Global E&C Group		$	-			$	-			$	-			$	1,800			$	500			$	-			$	1,300			$	-			$	-
C&F Group			(11,800	)			(13,800	)			2,000				28,100				22,100				2,000				2,000				2,000				9,900
Total		$	(11,800	)		$	(13,800	)		$	2,000			$	29,900			$	22,600			$	2,000			$	3,300			$	2,000			$	9,900

⁽³⁾ Amounts attributable to Foster Wheeler AG.

 

 

FOSTER WHEELER AG

APPENDIX 2: Reconciliation of Foster Wheeler Scope Operating Revenues to Operating Revenues

(in thousands of dollars)

 

		2013												2012																				2011
		YTD 6/30				Q2 6/30				Q1 3/31				Full Year 2012				Q4 12/31				Q3 9/30				Q2 6/30				Q1 3/31				Full Year 2011
Global E & C Group
Operating revenues - in Foster Wheeler Scope		$	868,242			$	443,488			$	424,754			$	1,586,198			$	423,870			$	380,482			$	416,830			$	365,016			$	1,594,992
Flow-through revenues			382,451				219,231				163,220				833,129				80,370				197,590				249,312				305,857				1,848,087
Operating revenues			1,250,693				662,719				587,974				2,419,327				504,240				578,072				666,142				670,873				3,443,079
Global Power Group
Operating revenues - in Foster Wheeler Scope			398,156				198,885				199,271				962,247				222,351				217,004				268,432				254,460				1,005,555
Flow-through revenues			4,702				1,803				2,899				9,820				3,455				2,220				1,888				2,257				9,474
Operating revenues			402,858				200,688				202,170				972,067				225,806				219,224				270,320				256,717				1,015,029
Consolidated
Operating revenues - in Foster Wheeler Scope			1,266,398				642,373				624,025				2,548,445				646,221				597,486				685,262				619,476				2,600,547
Flow-through revenues			387,153				221,034				166,119				842,949				83,825				199,810				251,200				308,114				1,857,561
Operating revenues		$	1,653,551			$	863,407			$	790,144			$	3,391,394			$	730,046			$	797,296			$	936,462			$	927,590			$	4,458,108
The above table excludes the following operating revenues from discontinued operations:
Operating revenues - in Foster Wheeler Scope		$	13,062			$	6,918			$	6,144			$	23,241			$	5,235			$	5,936			$	6,564			$	5,506			$	22,621
Flow-through revenues			-				-				-				-				-				-				-				-				-
Operating revenues		$	13,062			$	6,918			$	6,144			$	23,241			$	5,235			$	5,936			$	6,564			$	5,506			$	22,621

 

 

FOSTER WHEELER AG

FOOTNOTES

 

Definition of Scope: Metrics expressed in Foster Wheeler scope represent that portion of operating revenues, new orders booked and backlog on which profit is earned. Scope excludes revenues relating to third-party costs incurred by the Company as agent or principal on a reimbursable basis ("flow-through" costs).

 

Safe Harbor Statement:

This fact book may contain forward-looking statements that are based on the management’s assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company’s expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims, and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, which were filed with the U.S. Securities and Exchange Commission, and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication to Switzerland; benefits, effects or results of the Company's strategic renewal initiative; further deterioration in global economic conditions; changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries; changes in the financial condition of its customers; changes in regulatory environments; changes in project design or schedules; contract cancellations; changes in the estimates made by the Company of costs to complete projects; changes in trade, monetary and fiscal policies worldwide; compliance with laws and regulations relating to the Company's global operations; currency fluctuations; war, terrorist attacks and/or natural disasters affecting facilities either owned by the Company or where equipment or services are or may be provided by the Company; interruptions to shipping lanes or other methods of transit; outcomes of pending and future litigation, including litigation regarding the Company’s liability for damages and insurance coverage for asbestos exposure; protection and validity of the Company's patents and other intellectual property rights; increasing global competition; compliance with its debt covenants; recoverability of claims against the Company's customers and others by the Company and claims by third parties against the Company; and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed or furnished with the U.S. Securities and Exchange Commission.

 

Calculation of EBITDA: EBITDA is a supplemental financial measure not defined in generally accepted accounting principles, or GAAP. The Company defines EBITDA as income attributable to Foster Wheeler AG before interest expense, income taxes and depreciation and amortization. The Company has presented EBITDA because it believes it is an important supplemental measure of operating performance. Certain covenants under the Company's senior unsecured credit agreement use an EBITDA, as defined in such agreement, in the covenant calculations which is different than the EBITDA as presented herein. The Company believes that the line item on its consolidated statement of operations entitled "net income attributable to Foster Wheeler AG" is the most directly comparable GAAP financial measure to EBITDA. Since EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income attributable to Foster Wheeler AG as an indicator of operating performance or any other GAAP financial measure. EBITDA, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As EBITDA excludes certain financial information that is included in net income attributable to Foster Wheeler AG, users of this financial information should consider the type of events and transactions that are excluded.

 

The Company's non-GAAP performance measure, EBITDA, has certain material limitations as follows:

• It does not include interest expense. Because the Company has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations;

• It does not include taxes. Because the payment of taxes is a necessary and ongoing part of the Company's operations, any measure that excludes taxes has material limitations; and

• It does not include depreciation and amortization. Because the Company must utilize property, plant and equipment and intangible assets in order to generate revenues in its operations, depreciation and amortization are necessary and ongoing costs of its operations. Therefore, any measure that excludes depreciation and amortization has material limitations.