Cameron International Corp.'s (CAM) third-quarter profit fell
23% amid weak demand for oil and gas drilling equipment, but orders
increased, boosting the company's backlog.
In addition, the oil and gas pressure control equipment
manufacturer raised its 2009 earnings forecast again, this time to
$2.26 to $2.30 a share from $2.15 to $2.25.
The company has been upgrading many of its manufacturing
facilities, cutting costs and reducing cycle times, reinforcing its
position as a low-cost manufacturer in many of its businesses.
Cameron is awaiting regulatory approval of its planned $882.4
million acquisition of rival equipment maker Natco Group Inc.
(NTG), which would leave Natco holders owning about 10% of Cameron.
On Tuesday, Cameron said it expects the deal to close in the fourth
quarter.
Cameron reported a profit of $124.9 million, or 56 cents a
share, down from $163 million, or 71 cents a share, a year earlier.
The latest period included 2 cents a share in severance-related
costs. The company in August forecast 50 cents to 55 cents, above
analysts' views at the time.
Revenue decreased 18% to $1.23 billion. Analysts polled by
Thomson Reuters most recently expected $1.29 billion.
Gross margin rose to 32.8% from 30.2%.
President and Chief Executive Jack B. Moore said margins held up
well during the quarter and that orders at its subsea business
drove an increase in backlog.
Total orders rose to $1.34 billion for the third quarter from
$902 million at the end of the second quarter, but were far below
the $2.61 billion a year earlier. Backlog was up at $5.12 billion,
up from $5.02 billion in the second quarter, but below $6.15
billion a year earlier.
Shares closed Monday at $37.42 and didn't trade premarket. The
stock is up roughly 80% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com