By Saabira Chaudhuri
Cameron International Corp.'s (CAM) third-quarter earnings
jumped 36% as the oil-and-gas equipment maker recorded double-digit
revenue gains across all its segments and benefited from a
comparison with a year-earlier period bogged down by charges.
Results beat expectations.
For the fourth quarter, Cameron projected earnings between 95
cents to 97 cents a share, excluding charges, while analysts polled
by Thomson Reuters estimated $1.08 a share.
"While overall market growth in North America is under pressure,
the company's outlook for the fourth quarter is robust, with
visibility to orders in the international and deepwater markets,"
Chief Executive Jack B. Moore said. "Additionally, we continue to
gain share in our surface North America market."
The company, which makes pressure-control equipment for the
energy sector has seen its revenue steadily grow for more than two
years as recovering oil-and-gas demand boosts its sales of rig
equipment. Earnings have also mostly improved.
For the latest period, Cameron posted a profit of $223.6
million, or 90 cents a share, versus $164.5 million, or 67 cents a
share, a year earlier. Excluding one-time items, earnings were 91
cents versus 78 cents a share. In July, the company predicted 87
cents to 90 cents a share.
The latest period included $3.4 million in pretax charges,
primarily related to integration costs. The year-earlier period
included $34.2 million in charges, which were related to retiring
the company's convertible debentures, litigation, and
mark-to-market losses associated with foreign currency
derivatives.
Revenue increased 32% to $2.22 billion. Analyst surveyed by
Thomson Reuters expected $2.19 billion.
However, gross margin narrowed to 29.3% from 32.6% as input
costs climbed 38%.
Drilling and production revenue--the biggest segment by
sales--was up 31%, while valves and measurement revenue jumped 23%.
Revenue from the smaller segment for process and compression
systems was up 47%.
Cameron reported orders were up 15% to $2.3 billion. Meanwhile,
Cameron's backlog at the end of the third quarter was a record $7.6
billion, up from $5.8 billion a year earlier.
Shares closed Friday at $51.24 and were inactive in recent
premarket trading. The stock has risen 4.3% in the past 12
months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com