Cameron International Corp.'s (CAM) second-quarter earnings rose
15% as the oil-and-gas pressure-control equipment maker posted
double-digit revenue growth at its drilling and production systems
unit and its valves and measurement segment.
The company also raised its full-year earnings guidance by a
nickel to $2.55 and $2.65. For the third quarter, Cameron projects
third-quarter earnings of 70 cents to 75 cents a share, while
analysts polled by Thomson Reuters expect 71 cents.
Cameron reported orders grew 72% to $2.39 billion from a year
ago. Backlog at the quarter's end was up 12% at $5.52 billion from
a year ago, and up 13% from the first quarter.
Cameron, which was hurt during the recession amid a weak demand
for oil and gas drilling equipment, has seen revenue grow in recent
quarter. Record deliveries of subsea equipment boosted sales growth
in 2010.
In April, BP PLC (BP, BP.LN) sued three companies, including
Cameron, accusing them of negligence that led directly to the
Deepwater Horizon explosion that killed 11 workers and caused a
massive oil spill. Cameron, which manufactured a critical safety
device called a blowout preventer, said in order to protect itself,
it had filed counterclaims against other parties to the
litigation.
However, Barclay's Capital said last week Cameron's new products
and upgrades to existing models stand to gain from BP's heightened
standards for blowout preventers, as other off-shore operators are
expected to follow suit.
Cameron posted a profit of $148 million, or 59 cents a share, up
from $129.2 million, or 52 cents a share, a year earlier. The
prior-year period included 6 cents in charges. The company in April
forecast earnings of 60 cents to 65 cents.
Revenue rose 20% to $1,741.1 billion, as analysts polled by
Thomson Reuters predicted $1.65 billion.
Gross margin fell to 30.3% from 32.2%.
Drilling and production revenue rose 20%; valves and measurement
revenue climbed 31% and process and compression systems was up
7.2%.
Shares closed Wednesday at $50.56 and were inactive
premarket.
-By Nathalie Tadena and Tess Stynes, Dow Jones Newswires;
212-416-3287; nathalie.tadena@dowjones.com