By Nathalie Tadena
Cameron International Corp.'s (CAM) second-quarter net income
rose 18% as the oil-and-gas equipment maker posted
better-than-expected revenue growth, with especially strong gains
in its valves and measurement business.
Shares jumped 3.8% to $46.52 in premarket trading.
For the third quarter, Cameron projected earnings between 87
cents and 90 cents a share, below the 91 cents estimate from
analysts polled by Thomson Reuters.
Cameron's revenue has steadily grown for more than two years as
recovering oil-and-gas demand boosts its sales of rig equipment.
Earnings have also improved, though the company booked a steep
charge in the fourth quarter due to litigation costs stemming from
the 2010 Deepwater Horizon disaster.
Cameron reported a profit of $174.6 million, or 70 cents a
share, up from $148 million, or 59 cents a share, a year
earlier.
The company's cautious April view called for a per-share profit
between 70 cents and 75 cents.
Revenue rose 18% to $2.05 billion, above analysts' expectation
of $2.01 billion.
Gross margin narrowed to 29.4% from 30.3%.
Cameron's drilling and production business, its largest segment
by revenue, saw revenue jump 15%. The valves and measurement
segment posted a 31% increase in revenue. Process and
compression-systems sales were up 8.9%.
Total orders rose to $2.57 billion from $2.39 billion a year
ago. Backlog climbed to $7.45 billion, up from $5.52 billion a year
ago and up from $6.77 billion in the prior quarter.
Through Wednesday's close, the stock is off 13% over the past
three months.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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