By Melodie Warner
Cameron International Corp.'s (CAM) fourth-quarter earnings
soared as double-digit sales growth from all segments helped drive
the oil-and-gas equipment maker's stronger-than-expected
revenue.
The company also forecast first-quarter earnings of 70 cents to
75 cents a share and estimated 2013 earnings at $3.70 to $3.95 a
share. Analysts surveyed by Thomson Reuters expect 84 cents a share
and $4.04, respectively.
Cameron's revenue has steadily grown for more than two years as
recovering oil-and-gas demand boosts its sales of rig equipment.
But litigation, integration and other charges have weighed on its
profit growth and margins.
Cameron reported a profit of $218.3 million, or 88 cents a
share, up from $99.9 million, or 40 cents, a year earlier.
Excluding items such as impairment, joint-venture formation and
restructuring costs, per-share earnings rose to 95 cents from 77
cents.
The company's October projection was for adjusted earnings of 95
cents to 97 cents a share, below consensus estimates at the
time.
Revenue climbed 19% to $2.43 billion, topping the $2.38 billion
forecast from analysts polled by Thomson Reuters.
Operating margin improved to 11.3% from 6.2%.
Revenue from the drilling and production business jumped 15% to
$1.39 billion. The valves and measurement segment posted a 20%
increase in revenue. Process and compression-systems sales were up
35%.
Orders booked in the fourth quarter rose to $3.4 billion from
$1.9 billion a year ago. Backlog climbed 43% to $8.6 billion.
Shares closed Wednesday at $60.90 and were inactive premarket.
The stock has climbed 14% over the past year.
Write to Melodie Warner at melodie.warner@dowjones.com
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