DOW JONES NEWSWIRES
Cameron International Corp.'s (CAM) third-quarter earnings rose
19% as the oil-and-gas pressure-control equipment maker saw demand
rebound from weakness last year.
But while revenue missed analysts' expectations, the company
again raised its 2010 earnings target, this time to $2.38 to $2.40
a share from $2.30 to $2.35, and projected fourth-quarter earnings
of 65 cent to 67 cents a share. Analysts' average estimate is 65
cents a share, according to Thomson Reuters.
President and Chief Executive Jack B. Moore said, "While we did
see improvement in a number of our businesses, overall margins
declined in the third quarter and are expected to trough in the
fourth quarter." Gross margin fell to 31.3% in the third quarter
from 32.8% a year earlier.
Cameron reported $1.48 billion in orders, up 10% from a year
earlier, and the highest quarterly total in two years. Backlog was
$4.94 billion, down from $5.12 billion a year earlier and up from
$4.92 billion in the second quarter.
The company has been working with its customers to meet
increased safety requirements on offshore drilling rigs in the wake
of the Deepwater Horizon disaster in the U.S. Gulf of Mexico.
Though Cameron gets a small portion of its revenue in the region,
more widespread and stricter regulations could give its earnings a
boost. It built the Deepwater Horizon's blowout preventer, a
critical safety device that failed to shut down the Macondo
well.
Cameron reported a profit of $148.7 million, or 61 cents a
share, up from $124.9 million, or 56 cents a share, a year earlier.
Charges were 3 cents and 2 cents a share, respectively. The company
in August projected earnings of 58 cents to 60 cents a share.
Revenue jumped 24% to $1.53 billion after falling 18% a year
earlier. Analysts most recently expected $1.58 billion.
Shares closed Monday at $43.89 and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com