Cameron International Corp.'s (CAM) fourth-quarter earnings fell
33% amid continued soft demand for oil and drilling equipment.
The oil-and-gas pressure-control equipment maker also projected
first-quarter earnings of 48 cents to 50 cents, slightly below
recent estimate of 51 cents by analysts polled by Thomson Reuters.
For the year, the company projected earnings of $2.10 to $2.20,
while analysts forecast $2.18.
Cameron has been upgrading many of its factories, cutting costs
and reducing recycle times to reinforce its position as a low-cost
manufacturer in many of its businesses. The company completed its
$980 million acquisition of rival Natco in November, and Cameron
President and Chief Executive Jack B. Moore said Tuesday "we enter
2010 with another solid backlog, more than half of which is subsea
systems business." The Natco acquisition is expected to add to
earnings this year, he added.
Cameron reported a profit of $97.3 million, or 41 cents a share,
down from $146 million, or 66 cents, a year earlier. Excluding
items, such as restructuring and pension-related charges, earnings
fell to 54 cents from 74 cents. Revenue decreased 4% to $1.46
billion, but jumped 19% sequentially.
Analysts most recently forecast earnings of 53 cents on revenue
of $1.29 billion.
Margins declined in the quarter, as expected, across several
product lines and because a bigger portion of its revenue was
related to its subsea projects, which typically carry lower
margins, Moore said.
Total orders climbed 17% to $1.37 billion as increases in its
drilling and production segment--particularly deepwater
projects--more than offset slight declines at its
compression-systems segment.
Shares closed Monday at $36.91 and didn't trade premarket. The
stock is up 61% the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;