FMC Technologies (FTI), a leading global provider of technology solutions for the energy industry,has announced a 32.03 percent jump in profit for the quarter ended Mar. 31, 2014.

The company earned $135.20 million or $0.57 a share in the first-quarter, compared with $102.40 million or $0.43 a share a year ago.

Analysts on average had predicted net income of $0.50 a share.

Revenue during the first-quarter climbed 10.84 percent to $1824.40 million from $1,646 million in the last year period.

Gross margin expanded by 318 basis points over the last year period to 11.66 percent.

Total expenses as a percentage of revenues decreased to 88.34 percent from 91.52 percent in the same period last year.That resulted in improvement of 318 basis points in operating margin to 11.66 percent.

The company reported operating income of $212.80 million, compared with an operating income of $139.50 million in the previous year period.

"As a result of strong orders in the quarter, Subsea Technologies achieved record backlog," said John Gremp, chairman, President and CEO of FMC Technologies. "We delivered solid subsea revenue and operating profit and expect to see this trend continue throughout the remainder of the year. Surface Technologies operational performance was strong as our international surface wellhead business delivered another solid quarter and our North American business strengthened."

The company's guidance for 2014 diluted earnings per share is $2.55 to $2.75, but now excludes both the expected results from operations of the material handling products business post divestiture and an anticipated gain associated with the sale.

Cash flow

FMC Technologies has generated cash of $51.80 million from operating activities during the quarter, as against cash outgo of $33.80 million in the last year period.

The company has spent $90 million in cash to meet investing activities during the quarter, as against cash outgo of $76.90 million in the year period. It has made net capital expenditure of $92 million during the quarter, which was higher by 16.60 percent or $13.10 million from a year ago.

The company has spent $70 million in cash to meet financing activities during the quarter, as against cash inflow of $5 million in the last year period.

The company has made net repayment of $13.20 million debt during the quarter. It has spent net of $45.80 million on common stock repurchases.

As on Mar. 31, 2014, FMC Technologies's cash balance stood at $290.30 million, up by 22.70 percent or $53.70 million from Mar. 31, 2013.

Working Capital

FMC Technologies witnessed reduction in the working capital over the year. It stood at $1,489 million as at Mar. 31, 2014, down by $138.10 million or 8.49 percent from $1627.10 million on Mar. 31, 2013. The company's current ratio decreased to 1.57 as at Mar. 31, 2014 from 1.81 on Mar. 31, 2013.

The company's cash conversion cycle (CCC) was almost stable at 121 days for first-quarter, when compared with the last year period. CCC is a liquidity metric which expresses the length of time (in days) that a company uses to sell inventory, collect receivables and pay its accounts payable. Decreasing or steady CCCs are good for business.

Days' sales outstanding went up to 107 days for first-quarter compared with 101 days for the last year. This indicates the company has extended credit period to clients for making payment.

Days' inventory outstanding decreased to 55 days for first-quarter compared with 59 days for previous year. This suggests the company took less time to convert the inventory into sales.

While days' payable outstanding went up to 41 days for first-quarter from 39 days for the last year. This reflects that the company has made late payment to vendors compared to prior year period.

Debt Position

FMC Technologies has witnessed a decrease in total debt over the last year. As at Mar. 31, 2014, the company's total debt stood at $1361.70 million, down 18.99 percent or $319.10 million from Mar. 31, 2013.

The company's total debt accounts for 20.24 percent of total assets on Mar. 31, 2014, compared with 27.67 percent on Mar. 31, 2013.

The company witnessed a decline in debt to equity ratio to 0.56 on Mar. 31, 2014 when compared with 0.89 on Mar. 31, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 25.95 from 17.22 in the same period last year.