HOUSTON – Oil-equipment maker FMC Technologies made nearly 15 times more in profit in the third quarter than it did during the previous three-month period, after cost-cutting measures thickened its margins.
The Houston company on Wednesday reported a $32.2 million in net income, or 20 cents a share, for the July-September period, below its profit of $82 million, or 36 cents a share, in the same period the previous year.
Still, it’s higher than the $2.2 million it collected in the second quarter. FMC credited cost-cutting measures.
“We have used this downturn as a catalyst to make fundamental changes to our business model that will continue to provide substantial benefits,” said Doug Pferdehirt, president and CEO of FMC Technologies, in a statement.
In July, the company announced it cut 1,000 more jobs from its payroll. In the third quarter, the company’s costs and expenses came in at 95.1 percent of its revenue, down from about 98 percent in the previous quarter.
The increased profit came even as FMC’s revenue fell to $1.1 billion, down 29 percent from the same period last year. Sales in its three major business lines also fell compared to the second quarter. Its subsea technologies business, though, increased its operating profit margin 23 percent to about $120 million, compared to the second quarter.
FMC shares rose 2.4 percent to $32.25 in after-hours trading in New York on Wednesday.