Cameron Reports Significant Increase in 2Q Revenues (USA)

Cameron Announces 2Q 2012 Revenues Report (USA)

Cameron reported net income of $174.6 million, or $0.70 per diluted share, for the quarter ended June 30, 2012, compared with net income of $148.0 million, or $0.59 per diluted share, for the second quarter of 2011. The second quarter 2012 results include pre-tax charges of $9.9 million, or $0.04 per share, primarily related to pension settlement and integration costs. The second quarter 2011 results included pre-tax charges of $20.1 million, or $0.07 per diluted share, related to litigation and restructuring costs.

Year-over-year revenues increase in every segment

Revenues were $2.05 billion for the quarter, up 18.0 percent from $1.74 billion a year ago, and income before income taxes was $223.1 million, up 19.0 percent from $187.4 million a year ago. Cameron Chairman and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increases were due to gains in all three of the Company’s segments, with the Drilling & Production Systems (DPS) and Valves & Measurement (V&M) segments seeing double digit revenue gains. “In addition, EBITDA margins in each of our segments showed sequential quarterly improvements,” Moore said.

Year-over-year orders increase nearly 8%, include large subsea order for Egypt. Quarterly records set for several businesses

Total orders were $2.57 billion for the quarter, up from $2.39 billion in the second quarter of 2011, for an increase of 7.8%. Moore noted that this was Cameron’s second highest orders quarter ever. Record bookings were established for the surface and V&M businesses.

Orders for the quarter included a $122 million award from Petrobel for subsea trees, MARS modules and HIPPS manifolds, making it Cameron’s second complete SPS system in Egypt. In the drilling systems business, orders for a total of five deepwater blowout preventer stacks as well as five jackup blowout preventer stacks were received during the quarter.

Cameron’s backlog at the end of the second quarter was $7.45 billion, up from the first quarter level of $6.77 billion and up from $5.52 billion a year ago. Moore noted that this is a record backlog for the Company. “This represents year-over-year backlog increases for all of our business segments,” he said. “It reflects 35% 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 operations generated cash of $163.5 million during the second quarter. Moore said cash flow from operations should accelerate in the back half of the year as Cameron’s working capital needs should continue to moderate. Moore also noted that Cameron spent approximately $182 million in capital expenditures in the first half. “We expect capital spending to approximate $500 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.”

Full-year earnings guidance

Moore said Cameron’s third quarter earnings are expected to be in the range of $0.87 to $0.90 per share, and that the Company anticipates that full-year 2012 earnings, excluding charges, will be in the range of $3.20 to $3.30 per share.

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

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Press Release, July 30, 2012