Foster Wheeler AG (FRA:FWI) Gross Margin % : 15.21% (As of Sep. 2014)

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What is Foster Wheeler AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Foster Wheeler AG's Gross Profit for the three months ended in Sep. 2014 was €101 Mil. Foster Wheeler AG's Revenue for the three months ended in Sep. 2014 was €667 Mil. Therefore, Foster Wheeler AG's Gross Margin % for the quarter that ended in Sep. 2014 was 15.21%.

The historical rank and industry rank for Foster Wheeler AG's Gross Margin % or its related term are showing as below:

FRA:FWI' s Gross Margin % Range Over the Past 10 Years
Min: 2.62 Med: 13.07 Max: 17.4
Current: 15.59

During the past 13 years, the highest Gross Margin % of Foster Wheeler AG was 17.40%. The lowest was 2.62%. And the median was 13.07%.

FRA:FWI's Gross Margin % is not ranked
in the Construction industry.
Industry Median: 19.23 vs FRA:FWI: 15.59

Foster Wheeler AG had a gross margin of 15.21% for the quarter that ended in Sep. 2014 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Foster Wheeler AG was 4.50% per year.

Foster Wheeler AG Gross Margin % Historical Data

The historical data trend for Foster Wheeler AG's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Foster Wheeler AG Gross Margin % Chart

Foster Wheeler AG Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Gross Margin %

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15.00

14.72

12.08

17.40

16.91

Foster Wheeler AG Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Gross Margin %	Get a 7-Day Free Trial															19.14	15.57	15.75	15.85	15.21

Competitive Comparison of Foster Wheeler AG's Gross Margin %

For the Engineering & Construction subindustry, Foster Wheeler AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Foster Wheeler AG's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Foster Wheeler AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Foster Wheeler AG's Gross Margin % falls into.

Foster Wheeler AG Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Foster Wheeler AG's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )	=	Gross Profit (A: Dec. 2013 )	/	Revenue (A: Dec. 2013 )
	=	408.1	/	2413.708
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2413.708 - 2005.602)	/	2413.708
	=	16.91 %

Foster Wheeler AG's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin % (Q: Sep. 2014 )	=	Gross Profit (Q: Sep. 2014 )	/	Revenue (Q: Sep. 2014 )
	=	101.5	/	667.143
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(667.143 - 565.679)	/	667.143
	=	15.21 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Foster Wheeler AG (FRA:FWI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Foster Wheeler AG had a gross margin of 15.21% for the quarter that ended in Sep. 2014 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Foster Wheeler AG Gross Margin % Related Terms

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Foster Wheeler AG (FRA:FWI) Business Description

Industry

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Address

Website

http://www.fwc.com

Foster Wheeler AG was formed in 1927. The Company, with its subsidiaries, is a provider of construction and engineering services. The Company serves the oil and gas, oil refining, chemical and petrochemical, environmental, power generation, and power plant operation and maintenance industries. The Company operates through two business groups: its Global Engineering and Construction Group (Global E&C Group) and its Global Power Group. The Global E&C Group operates and designs, engineers, and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, pharmaceutical and biotechnology facilities and related infrastructure, power generation and distribution facilities, and gasification facilities. The group provides engineering, project management and construction management services, and also designs facilities in new or developing market sectors, such as carbon capture and storage, solid fuel-fired integrated gasification combined-cycle power plants, coal-to-liquids, coal-to-chemicals and biofuels. The Global E&C Group additionally performs environmental remediation services. The Global Power Group designs, manufactures and installs steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities. It offers new and retrofit nitrogen-oxide reduction systems, and provides site services related to these products, including construction and erection, maintenance engineering, plant upgrading, and life extensions. The Global Power Group conducts research and development in the areas of combustion, solid, fluid, and gas dynamics, heat transfer, materials, and solid mechanics. Further, this group owns and operates independent power production and waste-to-energy facilities, as well as power generation facilities for the process and petrochemical industries. Companies that compete with Global E&C Group include but are not limited to the following: Bechtel Corporation; Chicago Bridge & Iron Company N.V.; Chiyoda Corporation; Fluor Corporation; Jacobs Engineering Group Inc.; JGC Corporation; KBR, Inc.; Saipem S.p.A.; Technip; TÃ©cnicas Reunidas, SA; and WorleyParsons Ltd. Companies that compete with Global Power Group include but are not limited to the following: Alstom Power S.A.; Andritz Group AG; The Babcock & Wilcox Company; Babcock Power Inc.; Dongfang Boiler Works (a subsidiary of Dong Fang Electric Corporation); Doosan-Babcock; Harbin Boiler Co., Ltd.; Hitachi, Ltd.; Metso Corporation; Mitsubishi Heavy Industries Ltd.; and Shanghai Boiler Works Ltd. The operations are subject to certain federal, state and local environmental, occupational health and product safety laws.

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