Cameron Reports Significant Earnings Increase (USA)

Cameron reported net income of $223.6 million for the third quarter ended September 30, 2012, or $0.90 per diluted share.

Earnings per share increased over 34 percent compared to the third quarter 2011 earnings of $0.67 per fully diluted share.

Charges for the third quarter of 2012 were $3.4 million pre-tax, primarily related to integration costs. Earnings per share for the third quarter of 2012 excluding these charges was $0.91. Charges for the third quarter 2011 were $34.2 million pre-tax, which were related to retiring the Company’s convertible debentures, litigation, and mark-to-market losses associated with foreign currency derivatives. Earnings per share for the third quarter of 2011 excluding these charges was $0.78.

Year-over-year revenues increase in every segment

Revenues of $2.2 billion for the quarter were at a record level, up nearly 32 percent from $1.7 billion a year ago. Income before income taxes was $269.8 million, up over 36 percent from $198.0 million a year ago. Cameron Chairman and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increases were due to double digit revenue gains in all three of the Company’s segments. “In addition, the Company’s EBITDA margin improved sequentially, with both Drilling & Productions Systems (DPS) and Process & Compression Systems (PCS) registering gains,” Moore said.

Year-over-year orders increase 15%

Total orders were $2.3 billion for the quarter, up from $2.0 billion in the third quarter of 2011, for an increase of 15%. Moore noted that orders continue to be near record levels reflecting the breadth of the Company’s products and served markets. Moore also noted record bookings were established for the surface business, despite weaknesses in the North American rig count.

Cameron’s backlog at the end of the third quarter was $7.6 billion, up from the beginning of the year level of $6.0 billion and up from $5.8 billion a year ago. Moore noted that this is a record backlog for the Company. “This reflects over 30% growth from a year ago”, Moore stated, “While overall market growth in North America is under pressure, the Company’s outlook for the balance of 2012 is robust with visibility to orders in the international and deepwater markets. Additionally, we continue to gain share in our surface North America market.”

Capital investment continues. Balance sheet strong

Cameron’s cash flow from operations was $138.2 million year-to-date. Moore said cash flow from operations should accelerate in the fourth quarter as Cameron’s working capital needs are expected to continue to moderate. Moore also noted that Cameron spent approximately $280 million in capital expenditures year-to-date. “We anticipate capital spending to approximate $475 million for 2012,” Moore said, “as we focus on investments in our aftermarket and unconventional resource related businesses, as well as our Brazilian capacity expansion.”

Fourth quarter earnings guidance

Moore said Cameron’s fourth quarter earnings are expected to be in the range of $0.95 to $0.97 per share, excluding charges.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.

[mappress]

Press Release, October 31, 2012