Cameron International Corp.'s (CAM) first-quarter profit grew
5.1% as higher sales more than offset lower margins.
The oil-and-gas pressure-control equipment maker also raised its
full-year earnings target by 10 cents to $2.20 to $2.30 a share on
an improved outlook for the company's shorter-cycle businesses.
Second-quarter earnings were projected at 52 cents to 55 cents a
share, bracketing analysts' expectations, according to Thomson
Reuters.
"While we remain cautious about the near-term level of rig
activity, particularly in North America, we are encouraged by the
strengthening we've seen in several of our markets," said President
and Chief Executive Jack B. Moore.
The company has been upgrading many of its factories, cutting
costs and reducing recycling times to reinforce its position as a
low-cost manufacturer in many of its businesses.
Cameron posted a profit of $120.4 million, up from $114.6
million. But it fell to 48 cents from 52 cents on a per-share basis
as the amount of stock outstanding grew 13%. Costs related to
severance charges and other items lowered results by 3 cents and 7
cents, respectively. In February, the company projected earnings of
48 cents to 50 cents.
Revenue climbed 7.1% to $1.35 billion, below the $1.45 billion
projected by analysts.
Margins fell to 32.1% from 32.9%.
Total orders rose 23% to $1.21 billion, reflecting the first
full quarter of Natco's inclusion in the process systems business
and modest levels of recovery in some markets.
Shares closed Wednesday at $44.47 and were inactive
premarket.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com