DOW JONES NEWSWIRES
Cameron International Corp.'s (CAM) fourth-quarter earnings fell
39% as charges from the Deepwater Horizon disaster and lower
margins offset better-than-expected revenue.
The maker of pressure-control equipment for the energy sector
also forecast current-quarter earnings of 50 cents to 55 cents a
share and full-year earnings of $3.20 to $3.30 a share. Analysts
surveyed by Thomson Reuters expect per-share earnings of 75 cents
and $3.52, respectively.
Cameron has seen rising revenue for two years now, after weak
demand for oil and natural-gas drilling in the recession hurt its
top line.
Cameron reported a profit of $99.9 million, or 40 cents a share,
down from $164.6 million, or 66 cents, a year earlier. Excluding
items such as integration and Deepwater Horizon disaster-related
costs, earnings rose to 77 cents from 69 cents. Revenue jumped 12%
to $2.03 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of 76 cents on revenue of $1.9 billion.
Operating margin fell to 6.2% from 11.9%.
Drilling and production revenue--the biggest segment by
sales--was up 8.7%, while valves and measurement revenue jumped
37%. Revenue from the process and compression systems segment
slipped 0.4%.
Orders rose 12% to $1.91 billion from $1.71 billion a year
earlier. Backlog at the quarter's end was $5.79 billion, up from
$4.82 billion the year before.
Shares were trading 3.9% lower at $52.05 in recent premarket
action. The stock has risen 10% so far this year though Wednesday's
close.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com