UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) February 4, 2004

 
FMC TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other
jurisdiction of incorporation)	 	1-16489
(Commission File Number)	 	36-4412642
(I.R.S. Employer
Identification No.)	
 
200 East Randolph Drive, Chicago, Illinois 60601
(Address of principal executive offices) (Zip Code)
 
(312) 861-6000
Registrant’s telephone number, including area code

Item 7.	Financial Statements and Exhibits.	
 
(c) Exhibits. The following exhibit is furnished as part of this report:
 
99.1 Slides for FMC Technologies, Inc. Presentation at the Credit Suisse / First Boston conference on February 5, 2004.
 
Item 9.	Regulation FD Disclosure.	
 
Representatives from FMC Technologies, Inc. will make a presentation at the Credit Suisse / First Boston Conference in Vail, Colorado on February 5, 2004. Presenters at this conference will include William H. Schumann, III, Senior Vice President, Chief Financial Officer and Treasurer, FMC Technologies, Inc. and Peter Kinnear, Vice President of Energy Production Systems, FMC Techologies, Inc. Slides containing information to be presented at the meeting are attached hereto as an exhibit to this report and are incorporated herein in their entirety by this reference. These slides may also be accessed at the company’s website (www.fmctechnologies.com). This information is being furnished under Item 9 of Form 8-K and is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended. The posting and furnishing of this information is not intended to, and does not, constitute a determination by FMC Technologies, Inc. that the information is material or that investors should consider this information before deciding to buy or sell FMC Technologies, Inc. securities.

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FMC TECHNOLOGIES, INC.	
 	 	
By:	 	/s/    William H. Schumann, III        	

	
 	 	William H. Schumann, III
Senior Vice President,
Chief Financial Officer and
Treasurer	
 
Date: February 4, 2004

 
CREDIT SUISSE
FIRST BOSTON
February 2004
Presenters:
Bill Schumann, CFO
Peter Kinnear, Vice President of Energy Production Systems
Investor Relations Contact Maryann Seaman Phone: (312) 861-6414 maryann.seaman@fmcti.com

 
These slides and the accompanying presentation contain “forward-looking” statements, which represent management’s best judgment as of the date hereof based on information currently available. Actual results of the Company may differ materially from those contained in the forward-looking statements. Additional information concerning factors that may cause results to materially differ from those in the forward-looking statements is contained in the Company's periodic reports filed under the Securities Exchange Act of 1934. The Company undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
Reconciliation of non GAAP measures referenced in today’s presentation can be found in the Appendix to this presentation.

 
FMC Technologies at a Glance
FMC Technologies is a global leader in the design, manufacture and supply of mission-critical technology for the energy, food and aviation industries
2003 Revenues
• Subsea Trees
• Surface Wellheads
• Manifolds
• Control Systems
• Floating Production Systems
• Separation Systems
• Loaders
• Deicers
• Passenger Boarding Bridges
Energy Production Systems 49%
Energy Processing Systems 19%
Airport Systems 10%
FoodTech 22%
• Fluid Control
• Loading Systems
• Measurement Solutions
• Citrus Extractor
• Freezing Systems
• Sterilization Systems
• Convenience Food Systems

 
Strong Financial Results
Energy Systems Growth Drives Earnings per Share
Operating Segment EBIT
Airport FoodTech Energy Systems
Earnings per share $0.82 $0.96 $1.13

 
Revenue/Earnings Growth Drivers
Energy Systems 2003 Sales
Secular Sales Growth Driven by Subsea
Subsea
Other
Rig Count Related
Cyclical Sales Growth
Driven by U.S./International Rig Count
Measurement Systems
Loading Systems
Fluid Control
Surface Products

 
Subsea Is The Largest and Fastest Growing Segment of Energy Systems
2003 Revenues
FoodTech
Energy Processing Systems
Airport Systems
Surface
Floating
Subsea
Subsea Revenue Growth

 
Subsea Tree Orders
Market Share – 2003
18%
Cooper Cameron
11%
ABB
4%
Dril-Quip
26%
Kvaerner
FMC Technologies
41%
Source: Quest Offshore

 
FMC Technologies
• Leading technology and industry positions across major product lines
• Leader in growing subsea and deepwater market
• Proven track record of growth with high return on capital

 
Leading Industry Positions
Energy Systems Industry Position
Production Systems
Subsea Systems 1
Surface Products 2
Floating Production (Mooring Systems) 2
Separation Systems
Processing Systems
Fluid Control 1
Loading Systems 1
Measurement Solutions 2
Sources: Simmons & Co. International, Boston Consulting Group, Spears and Associates, Quest, FMC Technologies Internal

 
Leading Industry Positions
FoodTech Industry Position
Citrus Extractors 1
Convenience Food Systems 2
Freezing Technologies 1
Sterilization Technologies 1
Airport Systems
Cargo Loaders 1
Passenger Boarding Bridges 1
Military Loader Flat Product Freezer
Sources: McKinsey, FMC Technologies Internal

 
FMC Technologies
• Leading technology and industry positions across major product lines
• Proven track record of growth with high return on capital
• Leader in growing subsea and deepwater market

 
Growing Earnings
(Earnings Per Share Data) Unaudited
$ 0.82 $ 0.96 $ 1.13
$ 0.32 $ 0.36 $ 0.35
$ 0.25 $ 0.25 $ 0.30
$ 0.19 $ 0.27 $ 0.34
$ 0.06 $ 0.08 $ 0.14
Q4
Q3
Q2
Q1
Amounts represent net income per diluted share before the cumulative effect of an accounting change. See Appendix.

 
Strong Cash Flow Has Reduced Debt
69
301
66
245
37
203
193
Includes Acquisition debt of $50M
Debt Net of Cash Synthetic Leases (pro forma)
At January 1, 2001, net debt is presented on a pro forma basis as defined in the Separation and Distribution Agreement with FMC Corporation.

 
Focused on Returns
(Return on Capital)
2001 2002 2003E
Low 6% N.M. 5%
Median 12% 6% 10%
High 17% 11% 13%
FTI 14% 14% 15%
Data Set
Baker Hughes Schlumberger
Dril-Quip Smith International
Cooper Cameron Varco International
Halliburton Weatherford International
•Return on capital is un-levered net income divided by average capital employed. Capital Employed is total assets less non-debt current liabilities, minority interest, goodwill and intangibles. Year 2003E Net Income based on First Call Estimate as of 11/03* Common shares outstanding, except for FTI which is company guidance.
•Un-levered Net Income adjusted to exclude restructuring and impairment charges as well as interest expense for each company. Sources: Compustat, First Call See Appendix.

 
FMC Technologies
• Leading technology and industry positions across major product lines
• Proven track record of growth with high return on capital
• Leader in growing subsea and deepwater market

 
Leading Deepwater/Subsea Position
• Broadest subsea systems capabilities
– 15+ years systems experience
• Leader in deepwater technology
– High reliability, quality and proven technology
• Well positioned with the major subsea E&P companies
– Alliance agreements create partnerships and standardization
• Well positioned in major producing basins
– Local manufacturing near customer’s project management teams
• Growing market

 
Offshore Capabilities
Metering & Control Systems
Surface Well Systems
Subsea Drilling Systems
Standard Subsea Trees
Light Well Intervention
Tension Leg Platforms
Floating Production Storage & Offloading Vessels
Turret Mooring Systems
Subsea Processing
Smart Well Control Systems
Subsea Template Systems
Subsea Manifold
ROV Tie-In Systems
Guidelineless Deepwater Trees

 
Strong Deepwater Track Record
1980 1983
Bonito Piraúna 1985
RJS-39 RJS-232 Marimbá
189m 293m RJS-284 1988
Kvaerner 383m Marimbá
961 ft RJS-376D 1988
619 ft
492m Placid
1,256 ft Green 1992
Canyon 31 Marlim
1,613 ft 684m MRL-9 1994
781m Marlim
ABB MRL-4 1997
2,244 ft 1027m Marlim Sul
2,561 ft 1997 MLS-3
Shell Mensa 1709m
3,368 ft 1618m 1999
Roncador
5,308 ft ABB RJS-436 2000
1853m Petrobras
5,605 ft 2002
Roncador Marathon 2004
1877m Camden Shell
Hills Coulomb
6,080 ft 2197m
2316m
ABB
6,157 ft Cameron
7,209 ft
7,600 ft

 

Technology Leadership
• Offshore Technology Conference Distinguished
Achievement Award Winners
– 1997 Amoco – Liuhua Project
– 1998 Shell – Mensa Project
– 1999 BP – Foinhaven Project
– 2000 Kerr-McGee – Neptune Spar Project
– 2001 Petrobras – Roncador
– 2002 ExxonMobil – Hoover / Diana Project
– 2003 Total – Girassol Project

 

Well Positioned with the Major Subsea Players
Subsea Completions by Operator 2003 to 2009E
Installations
Predominantly FTI accounts
Subsea Alliances
BP Gulf of Mexico
Shell Gulf of Mexico
Kerr McGee Gulf of Mexico
Statoil North Sea
Norsk Hydro North Sea
Woodside Global
500 400 300 200 100 0
Total
Petro bras
BP Exxo
C nMobil hevr onTe xaco
Ro Stato yal D il utch/S
N hell orsk
Hydr o Unoc Cono al coPh illips
Wood side
ENI
Buru llus
Murp hy
Marat hon
BHP
Billit on
Kerr
McGe e Sakh
Am alin erad a-He ss
Gazp rom
Petro
Cana da
EnCa na
INPE
X Sant os
Apache
Anad arko
Source: Quest Offshore

 
Growing Market
Deepwater Expenditures
26
1998—2002
58
2003—2007
Source: Douglas Westwood “The Deepwater Report 2003-07”

 
Installed Tree Forecast
Africa/Mediterranean
Asia Pacific North Sea Brazil North America
Based on Quest Offshore 3Q03 Normalized Case

 
Subsea Tree Project Awards
Source: Quest Offshore            , Company estimates

 
Major Upcoming Subsea Projects
North Sea
Encana Buzzard
Marathon Alvheim
Statoil Norne Satellites
Statoil Tyrihans
Gulf of Mexico
Anadarko Genghis Khan
BHP Neptune
Chevron Texaco Blind Faith
Chevron Texaco Tahiti
Brazil
Petrobras Campos Basin
Asia Pacific
Murphy Kikeh
Reliance KG – 36
West Africa
Addax Okwoki
BP Block 18
Chevron Texaco Lobito & Tombocco
Chevron Texaco Agbami
Devon Block 10
Exxon Mobil Bosi
Exxon Mobil Kizomba “C”
Total Moho Bilondo
Total Akpo
Total Rosa/Lirio
Shell Bonga Extension
Woodside Chinquetti

 
Building the Future
Continuing Product Evolution
• Subsea Systems Evolution
– Higher Pressures: 15,000 psi 20,000 psi
– Higher Temperatures: 350°F 425°F
– Deeper Water: 10,000’ 13,000’
– Subsea Electric Actuation: Hydraulic Electric
– Low-cost, shallow-water subsea systems
• LNG Offshore Loading Technologies
• Metering
– Ultrasonic
– Multiphase

 
Building the Future
New Initiatives under Development
• Subsea Processing
– Oil, gas and water separation on the ocean floor
• Light Well Intervention
– Well intervention without a drilling rig and riser
• Gas to Liquids Technology
- Conversion of stranded gas to saleable product

 
In Summary
A “New” Oilfield Services Company with
• Demonstrated Earnings Growth
• Strong and Continued Cash Flow
• High Return on Capital
Driven by Subsea / Offshore Capabilities
• High Barriers to Entry (Technology / Alliances)
• High Growth
• Platform for Added Products / Services

 
Appendix
Reconciliation of Non-GAAP measures (as required by Regulation G)
Q1 2001* Q2 2001* Q3 2001 Q4 2001 FY 2001
Income per diluted share (pro forma basis) (a non-GAAP measure) $ 0.06 $ 0.19 $ 0.25 $ 0.32 $ 0.82
Add: Pro forma incremental interest expense 0.04 0.03 - - 0.07
Less:
Restructuring and asset impairment charges (0.10) - (0.06) - (0.16)
Income taxes related to separation from FMC (0.05) (0.06) (0.02) - (0.13)
Other (0.01) (0.01) - - -
Income per diluted share before cumulative effect of
a change in accounting principle (GAAP basis) $ (0.06) $ 0.15 $ 0.17 $ 0.32 $ 0.60
*Results relating to periods prior to June 1, 2001 were carved out form the consolidated financial statements of FMC.
2001 2002
Un-levered net income (a non-GAAP Measure)** $ 67.3 $ 72.7
Less after-tax adjustments:
Interest Expense (8.6) ( 8.6)
Restructuring & Impairment charges (10.4) -
Income taxes related to separation from FMC ( 8.9) -
Cumulative effect of accounting changes ( 4.7) (193.8)
Net income (GAAP Basis) $ 34.7 $ (129.7)
**Used in calculation of return on capital