FMC Technologies, Inc. (NYSE:FTI Not-Tra) Q4 2015 Earnings Conference Call - Final Transcript
Feb 17, 2016 • 09:00 am ET
Good morning. My name is Erica, and I will be your conference operator today. At this time, I'd like to welcome everyone to the FMC Technologies' Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]
Matthew Seinsheimer, you may begin your conference.
Good morning and welcome to FMC Technologies' fourth quarter 2015 earnings conference call. Our news release and financial statements issued yesterday can be found on our website. I'd like to caution you with respect to any forward-looking statements made during this call. Although these forward-looking statements are based on our current expectations, beliefs, and assumptions regarding future developments and business conditions, they are subject to certain risk and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements.
Known material factors that could cause our actual results to differ from our projected results are described in our 10-K, 10-Q and other filings with the SEC. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
I will now turn the call over to John Gremp, FMC Technologies' Chairman and CEO.
Good morning. Welcome to our fourth quarter 2015 conference call. On the call today is Maryann Mannen, our Chief Financial Officer and Doug Pferdehirt, our President and Chief Operating Officer, who is joining us from another location. I'll focus my comments today on 2015 performance and our market outlook for the current year. Maryann will provide specifics on our quarterly and full-year financial performance as well as our financial outlook for 2016. We'll then open up the call for your questions.
In 2015, global upstream spending declined approximately 25% as a result of falling commodity prices. North America markets were impacted greater the most, experiencing the steepest activity decline seen in nearly three decades. Clearly, this was a very challenging year for the energy industry. FMC Technologies entered the downturn with solid operational momentum and we responded early with aggressive restructuring actions across all of our businesses. This wasn't just a reaction to declining activity levels, it was a fundamental change in the way we manage our business, aimed at providing meaningful and sustainable cost savings. Our effort is focused on driving better execution, product and process standardization, innovative technology and integrated business models. These are important steps that we believe will put the company in an even stronger competitive position.
In 2015, we were able to deliver on several key metrics. In Subsea Technologies, margins increased for a fourth consecutive year. For the full year, excluding all restructuring charges, we achieved Subsea margins of 15.1%. The strong results were driven by the strength of our backlog and