- Quarter's earnings per share total $0.41, including charges,
versus $0.66, including charges, in fourth quarter of 2008 -
Earnings per share, excluding charges, total $2.38 in 2009,
compared with $2.62 in 2008; including charges, $2.11 vs. $2.54 -
Year-end backlog remains above $5 billion - 2010 earnings per
share, excluding charges, expected to be in range of $2.10 to $2.20
HOUSTON, Feb. 9 /PRNewswire-FirstCall/ -- Cameron (NYSE:CAM)
reported net income of $97.3 million, or $0.41 per diluted share,
for the quarter ended December 31, 2009, compared with net income
in the prior year's fourth quarter of $146.0 million, or $0.66 per
diluted share. The fourth quarter 2009 results include after-tax
charges of $31.1 million, or $0.13 per share, comprised of
severance-related costs in certain of the Company's businesses and
charges associated with the acquisition of NATCO Group Inc., which
was closed in mid-November. The fourth quarter 2008 results
included a non-cash, after-tax charge of $16.5 million, or $0.08
per diluted share, associated with the termination of the Company's
U.S. pension plans. Excluding the above items, the Company's
earnings per diluted share were $0.54 for the fourth quarter of
2009, compared with $0.74 for the fourth quarter of 2008. Revenues
down four percent for quarter, 11 percent for year Revenues for the
fourth quarter of 2009 were $1.46 billion, down four percent from
the prior year, but up 19 percent sequentially. Revenues for the
year were $5.22 billion, down 11 percent from 2008's record $5.85
billion. Earnings per diluted share for 2009 were $2.11, compared
to $2.54 for 2008; excluding unusual items, earnings per diluted
share were $2.38 for 2009 and $2.62 for 2008. Cameron President and
Chief Executive Officer Jack B. Moore said that the Company saw, as
expected, a decline in margins across several of Cameron's product
lines in the quarter and the impact of an increased percentage of
revenues associated with subsea projects, which typically carry
lower margins than other Cameron businesses. "Our results in the
quarter were in-line with our expectations and reflect solid
performance by our people, particularly in the execution of
project-related business," Moore said. "Cameron's full-year
results, which surpassed our early 2009 forecasts, reflected the
strength and quality of our backlog, significant progress on cost
control and a continuing focus on execution of deepwater projects
in the subsea and drilling markets." Orders increase over year-ago
quarter; backlog remains above $5 billion at year-end Orders booked
in 2009's fourth quarter totaled $1.37 billion, up from the $1.17
billion of a year ago and up sequentially from the third quarter,
as gains in Drilling & Production Systems and Valves &
Measurement more than offset slight declines in Compression
Systems. Moore noted that in spite of a difficult market
environment, Cameron booked a substantial level of deepwater
project business, including the largest subsea tree order ever
placed in Brazil and Chevron's high-profile Jack & St. Malo
subsea development in the Gulf of Mexico. "These sizable subsea
bookings and stabilization in orders in other parts of our
business, along with the acquisition of NATCO, have allowed our
backlog to increase modestly from mid-year levels," Moore said.
Cash flow remains strong, expected to fund 2010 needs Moore said
that Cameron's cash flow from operations totaled approximately $613
million in 2009, compared with $988 million in 2008. "We spent
approximately $241 million in capital expenditures during the year,
continuing our focus on lowering costs and improving efficiency,"
Moore said. He also noted that while the Company was not permitted
to make share repurchases until the NATCO acquisition was closed in
mid-November, it still purchased nearly 590,000 shares at an
average price of approximately $37.65 per share in the fourth
quarter alone. Moore said that he expects cash flow in 2010 to
comfortably fund the Company's needs, with capital expenditures
anticipated to total approximately $180 million. 2010 earnings
expected to be at level similar to 2009; NATCO acquisition to be
accretive Moore said Cameron currently expects its 2010 earnings to
be in the range of $2.10 to $2.20 per diluted share, excluding the
impact on any charges related to restructuring or integration
activities. "We enter 2010 with another solid backlog, more than
half of which is Subsea Systems business," Moore said. "As a
result, we expect subsea revenues to be up substantially over the
year-ago levels, but that project-related business will, as is
typical, carry lower margins than most of our other product lines.
Meanwhile, we continue to see some pressure on margins in
shorter-cycle businesses, but we expect Cameron's overall margins
to trough during 2010. Finally, we anticipate the NATCO acquisition
will be accretive for the year, excluding integration costs. All of
these factors are reflected in our full-year earnings guidance, but
are, as always, subject to customer spending levels and our
execution on delivering backlog and controlling costs." Moore also
said Cameron's first quarter 2010 earnings are expected to be
approximately $0.48 to $0.50 per diluted share, with the actual
level dependent on a variety of factors, including those described
above. "Our 2009 performance was impressive, considering that we
entered the year with a great deal of concern over the risk of
cancellations and uncertainty with regard to customer spending," he
noted. "We begin 2010 with few concerns about the quality of our
backlog and a sense that our customers' confidence in the security
and viability of their spending plans is far greater than a year
ago. We expect to maintain our leadership positions in our markets,
continue to pursue acquisition opportunities and remain focused on
execution and cost control." Cameron (NYSE:CAM) is a leading
provider of flow equipment products, systems and services to
worldwide oil, gas and process industries. Website:
http://www.c-a-m.com/ In addition to the historical data contained
herein, this document includes forward-looking statements regarding
future market strength, customer spending and order levels,
revenues and earnings of the Company (including first quarter and
full year 2010 earnings per share estimates), as well as
expectations regarding equipment deliveries, margins,
profitability, the ability to control raw material, overhead and
operating costs, capital spending and cash flow, made in reliance
upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The Company's actual results may
differ materially from those described in forward-looking
statements. Such statements are based on current expectations of
the Company's performance and are subject to a variety of factors,
some of which are not under the control of the Company, which can
affect the Company's results of operations, liquidity or financial
condition. Such factors may include overall demand for, and pricing
of, the Company's products; the size and timing of orders; the
Company's ability to successfully execute the large subsea and
drilling systems projects it has been awarded; the possibility of
cancellation of orders in backlog; the Company's ability to convert
backlog into revenues on a timely and profitable basis; the impact
of acquisitions the Company has made or may make; changes in the
price of (and demand for) oil and gas in both domestic and
international markets; raw material costs and availability;
political and social issues affecting the countries in which the
Company does business; fluctuations in currency markets worldwide;
and variations in global economic activity. In particular, current
and projected oil and gas prices historically have generally
directly affected customers' spending levels and their related
purchases of the Company's products and services. Additionally,
changes in oil and gas price expectations may impact the Company's
financial results due to changes in cost structure, staffing or
spending levels. Because the information herein is based solely on
data currently available, it is subject to change as a result of
changes in conditions over which the Company has no control or
influence, and should not therefore be viewed as assurance
regarding the Company's future performance. Additionally, the
Company is not obligated to make public indication of such changes
unless required under applicable disclosure rules and regulations.
Cameron Unaudited Consolidated Condensed Results of Operations ($
and shares in millions except per share data) Three Months Twelve
Months Ended December 31, Ended December 31, ------------------
------------------ 2009 2008 2009 2008 ---- ---- ---- ----
Revenues: Drilling & Production Systems $946.9 $963.1 $3,406.0
$3,736.7 Valves & Measurement 312.1 378.1 1,194.7 1,473.3
Compression Systems 205.4 183.1 622.5 638.9 ----- ----- ----- -----
Total revenues 1,464.4 1,524.3 5,223.2 5,848.9 ------- -------
------- ------- Costs and Expenses: Cost of sales (exclusive of
depreciation and amortization shown separately below) 1,027.6
1,048.5 3,540.1 4,127.9 Selling and administrative expenses 198.4
183.8 715.6 668.3 Depreciation and amortization 44.3 36.4 156.6
132.1 Interest income (0.5) (5.1) (5.9) (27.3) Interest expense
18.6 24.1 92.4 70.3 Restructuring expense and acquisition related
costs 42.6 - 81.6 - Charge for pension plan termination - 26.2 -
26.2 --- ---- --- ---- Total costs and expenses 1,331.0 1,313.9
4,580.4 4,997.5 ------- ------- ------- ------- Income before
income taxes 133.4 210.4 642.8 851.4 Income tax provision (36.1)
(64.4) (167.3) (270.7) ----- ----- ------ ------ Consolidated net
income $97.3 $146.0 $475.5 $580.7 ===== ====== ====== ======
Earnings per common share: Basic $0.42 $0.67 $2.15 $2.67 =====
===== ===== ===== Diluted $0.41 $0.66 $2.11 $2.54 ===== ===== =====
===== Shares used in computing earnings per common share: Basic
232.1 218.2 221.4 217.5 ===== ===== ===== ===== Diluted 236.1 221.5
225.0 228.6 ===== ===== ===== ===== EBITDA: ------- Drilling &
Production Systems $172.6 $206.0 $721.8 $710.4 Valves &
Measurement 60.9 88.2 247.5 333.6 Compression Systems 35.9 33.2
107.1 117.3 Corporate and other (1) (73.6) (61.6) (190.5) (134.8)
----- ----- ------ ------ Total $195.8 $265.8 $885.9 $1,026.5
====== ====== ====== ======== (1) Includes charges of $42.6 million
and $81.6 million for restructuring expense during the three and
twelve months ended December 31, 2009, respectively, and charges of
$26.2 million for termination of the U.S. pension plans during the
fourth quarter of 2008. Cameron Consolidated Condensed Balance
Sheets ($ millions) December 31, December 31, 2009 2008 ---- ----
(unaudited) Assets: Cash and cash equivalents $1,861.0 $1,621.0
Receivables, net 959.0 950.4 Inventories, net 1,664.2 1,336.9 Other
230.0 148.1 ----- ----- Total current assets 4,714.2 4,056.4 Plant
and equipment, net 1,192.4 931.7 Goodwill 1,441.6 709.2 Other
assets 377.2 205.1 ----- ----- Total Assets $7,725.4 $5,902.4
======== ======== Liabilities and Stockholders' Equity: Current
portion of long-term debt $22.2 $161.3 Accounts payable and accrued
liabilities 2,208.2 1,854.4 Accrued income taxes 65.9 95.5 ----
---- Total current liabilities 2,296.3 2,111.2 Long-term debt
1,232.3 1,218.6 Deferred income taxes 123.0 99.2 Other long-term
liabilities 154.1 128.9 ----- ----- Total liabilities 3,805.7
3,557.9 ------- ------- Stockholders' equity: Common stock, par
value $.01 per share, 400,000,000 shares authorized, 263,111,472
shares issued at December 31, 2009 and 236,316,873 shares issued at
December 31, 2008 2.6 2.4 Capital in excess of par value 2,244.0
1,254.5 Retained earnings 2,285.4 1,809.9 Accumulated other
elements of comprehensive income 9.5 (84.2) Less: Treasury stock,
18,453,758 shares at December 31, 2009 and 19,424,120 shares at
December 31, 2008 (621.8) (638.1) ------ ------ Total stockholders'
equity 3,919.7 2,344.5 ------- ------- Total Liabilities and
Stockholders' Equity $7,725.4 $5,902.4 ======== ======== Cameron
Unaudited Consolidated Condensed Statements Of Cash Flows ($
millions) Three Months Twelve Months Ended December 31, Ended
December 31, ------------------ ------------------ 2009 2008 2009
2008 ---- ---- ---- ---- Cash flows from operating activities: Net
income $97.3 $146.0 $475.5 $580.7 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
32.4 26.1 114.7 98.7 Amortization 11.9 10.3 41.9 33.4 Non-cash
charge for pension plan termination - 26.2 - 26.2 Non-cash stock
compensation expense 5.7 12.1 27.7 35.6 Tax benefit of employee
stock compensation plan transactions and deferred income taxes
(58.7) 22.1 (35.8) 1.9 Changes in assets and liabilities, net of
translation, acquisitions and non- cash items: Receivables 54.2
32.5 165.2 (157.9) Inventories 84.6 21.9 (220.9) (9.3) Accounts
payable and accrued liabilities 180.6 163.0 139.8 279.0 Other
assets and liabilities, net 21.4 14.6 (94.6) 99.2 ---- ---- -----
---- Net cash provided by operating activities 429.4 474.8 613.5
987.5 ----- ----- ----- ----- Cash flows from investing activities:
Capital expenditures (77.1) (111.8) (240.9) (272.2) Acquisitions,
net of cash acquired 34.4 (94.0) 11.2 (191.7) Proceeds from sale of
plant and equipment 0.5 2.2 4.1 3.9 --- --- --- --- Net cash used
for investing activities (42.2) (203.6) (225.6) (460.0) -----
------ ------ ------ Cash flows from financing activities:
Short-term loan borrowings (repayments), net (42.0) 11.1 (18.9)
31.8 Redemption of convertible debt securities - - (131.1) (106.9)
Issuance of long-term senior notes - - - 747.9 Debt issuance costs
- - - (5.5) Purchase of treasury stock (22.1) (64.1) (29.2) (279.4)
Proceeds from stock option exercises 5.1 0.6 10.2 17.6 Excess tax
benefits from stock compensation plan transactions 3.0 (0.2) 6.4
17.0 Principal payments on capital leases (1.5) (2.3) (6.7) (7.4)
---- ---- ---- ---- Net cash (used for) provided by financing
activities (57.5) (54.9) (169.3) 415.1 ----- ----- ------ -----
Effect of translation on cash 3.8 (30.8) 21.4 (61.5) --- ----- ----
----- Increase in cash and cash equivalents 333.5 185.5 240.0 881.1
----- ----- ----- ----- Cash and cash equivalents, beginning of
period 1,527.5 1,435.5 1,621.0 739.9 ------- ------- ------- -----
Cash and cash equivalents, end of period $1,861.0 $1,621.0 $1,861.0
$1,621.0 ======== ======== ======== ======== Cameron Orders and
Backlog ($ millions) Orders Three Months Twelve Months Ended
December 31, Ended December 31, ------------------
------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Drilling
& Production Systems $940.0 $744.4 $3,126.2 $5,255.4 Valves
& Measurement 323.4 312.9 1,004.1 1,573.5 Compression Systems
103.7 115.2 464.9 711.7 ------ ------ -------- -------- Total
$1,367.1 $1,172.5 $4,595.2 $7,540.6 ======== ======== ========
======== Backlog December 31, December 31, 2009 2008 ---- ----
Drilling & Production Systems $4,364.1 $4,416.8 Valves &
Measurement 547.1 749.2 Compression Systems 278.6 440.5 --------
-------- Total $5,189.8 $5,606.5 ======== ======== Cameron
Reconciliation of GAAP to Non-GAAP Financial Information ($
millions) Three Months Ended December 31, 2009
------------------------------------ Drilling & Production
Valves & Compression Systems Measurement Systems Corporate
Total ------- ----------- ------- --------- ----- Income (loss)
before income taxes $144.9 $51.2 $31.8 $(94.5)(1) $133.4
Depreciation & amortization 27.7 9.7 4.1 2.8 44.3 Interest
income - - - (0.5) (0.5) Interest expense - - - 18.6 18.6 --- ---
--- ---- ---- EBITDA $172.6 $60.9 $35.9 $(73.6) $195.8 ====== =====
===== ====== ====== (1) Includes a charge of $42.6 million for
restructuring expense. Three Months Ended December 31, 2008
------------------------------------ Drilling & Production
Valves & Compression Systems Measurement Systems Corporate
Total ------- ----------- ------- --------- ----- Income (loss)
before income taxes $186.3 $79.7 $29.1 $(84.7)(2) $210.4
Depreciation & amortization 19.7 8.5 4.1 4.1 36.4 Interest
income - - - (5.1) (5.1) Interest expense - - - 24.1 24.1 --- ---
--- ---- ---- EBITDA $206.0 $88.2 $33.2 $(61.6) $265.8 ====== =====
===== ====== ====== (2) Includes a $26.2 million charge for
termination of the U.S. pension plans. Cameron Reconciliation of
GAAP to Non-GAAP Financial Information ($ millions) Twelve Months
Ended December 31, 2009 -------------------------------------
Drilling & Production Valves & Compression Systems
Measurement Systems Corporate Total ------- ----------- -------
--------- ----- Income (loss) before income taxes $631.5 $211.3
$90.6 $(290.6)(1) $642.8 Depreciation & amortization 90.3 36.2
16.5 13.6 156.6 Interest income - - - (5.9) (5.9) Interest expense
- - - 92.4 92.4 --- --- --- ---- ---- EBITDA $721.8 $247.5 $107.1
$(190.5) $885.9 ====== ====== ====== ======= ====== (1) Includes a
charge of $81.6 million for restructuring expense. Twelve Months
Ended December 31, 2008 -------------------------------------
Drilling & Production Valves & Compression Systems
Measurement Systems Corporate Total ------- ----------- -------
--------- ----- Income (loss) before income taxes $639.9 $301.4
$102.0 $(191.9)(2) $851.4 Depreciation & amortization 70.5 32.2
15.3 14.1 132.1 Interest income - - - (27.3) (27.3) Interest
expense - - - 70.3 70.3 --- --- --- ---- ---- EBITDA $710.4 $333.6
$117.3 $(134.8) $1,026.5 ====== ====== ====== ======= ======== (2)
Includes a $26.2 million charge for termination of the U.S. pension
plans. DATASOURCE: Cameron CONTACT: R. Scott Amann, Vice President,
Investor Relations of Cameron, +1-713-513-3344 Web Site:
http://www.c-a-m.com/
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