Cameron Records $2.4 Bln in Revenues
- Business & Finance
Cameron has reported earnings per share for the first quarter of 2014 of $0.75 excluding charges and discontinued operations. This compares to earnings per share for the first quarter of 2013 of $0.69 excluding charges.
After-tax charges for the first quarter of 2014 were $0.21 per share primarily related to the write-off of non-tax deductible goodwill associated with the planned sale of the reciprocating compression business. Discontinued operations were at $0.03 loss.
The Company reported GAAP earnings per diluted share from continuing operations of $0.54 for the first quarter of 2014, compared to $0.59 for the first quarter of 2013.
Revenues were a first quarter record of $2.4 billion, up 18 percent from $2.1 billion a year ago. Cameron Chairman, President and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increase was due to gains in the Drilling and Production Systems group. Further, Moore commented, “Year over year revenue gains were reflected in our Drilling Systems, Surface Systems and OneSubsea businesses, a result of record backlogs established in 2013. We were pleased with our overall DPS and Valves & Measurement margins for the quarter and we continue to make progress in improving execution in our drilling business.”
Total orders for the quarter were $2.5 billion. While orders were down sequentially and year-over-year, they represented the second best first quarter results in the Company’s history. “Orders for the first quarter were driven by our drilling, surface and V&M businesses”, Moore said, “With a more robust outlook for North America and several deepwater projects expected to move forward, we believe our orders could exceed 2013’s record level.”
Cameron’s backlog at the end of the first quarter was $11.3 billion, down slightly from its historical high of $11.4 billion at the end of 2013. The ending first quarter backlog reflects the cancellation of the STX deep-water rig order during the quarter. First quarter backlog is up 13% from prior year levels.
The Company continued to actively repurchase its shares during the quarter. Following a record year in 2013, when 27 million shares were repurchased for $1.5 billion, an additional 15.2 million shares were repurchased during the first quarter for $926 million. Cameron increased its borrowing by $330 million during the quarter to help support its share repurchase activities. Also, during the quarter an additional $500 million of share repurchases were authorized by the Board of Directors. The quarter ended with an outstanding authorization of $420 million.
The Company recorded $105 million in capital expenditures in the first quarter, primarily in Surface Systems and OneSubsea. Full year capital expenditures are expected to be between $450 and $500 million, focused on Surface Systems, OneSubsea and Drilling Systems infrastructure. The Company continues to see capital investment opportunities in its core businesses.
Beginning in the first quarter of 2014, the Company’s Reciprocating Compression business is being reported as discontinued operations. With this exclusion noted, Cameron currently expects second quarter earnings from continuing operations to be in the range of $0.84 to $0.89 per diluted share excluding charges, and expects full-year 2014 earnings from continuing operations to be in the range of $3.80 to $4.10 per share excluding charges.
Cameron is a provider of flow equipment products, systems and services to worldwide oil, gas and process industries.