By Melodie Warner
Cameron International Corp.'s (CAM) first-quarter earnings rose
11% as all segments posted improved revenue, although margins
shrank.
The oil-and-gas equipment maker also lowered its full-year
earnings estimate to $3.50 to $3.70 a share from its January
forecast of $3.70 to $3.95 a share. The company also forecast
current-quarter earnings of 75 cents to 80 cents a share, while
analysts surveyed by Thomson Reuters expect 90 cents.
Cameron's revenue has 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 $148.3 million, or 60 cents a
share, up from $134 million, or 54 cents a share, a year earlier.
Excluding joint venture formation costs, hedging activity,
acquisition-integration costs and other items, adjusted earnings
rose to 70 cents from 54 cents.
The company's January projection was per-share earnings of 70
cents to 75 cents, below consensus estimates at the time.
Revenue jumped 17% to $2.12 billion, missing the $2.17 billion
estimate from analysts polled by Thomson Reuters.
Operating margin fell to 8.6% from 9.5%.
Revenue from the drilling and production business jumped 22% to
$1.27 billion. The valves and measurement segment posted a 6.2%
revenue increase. Process and compression-systems sales were up
21%.
Orders booked rose to $3.6 billion from $2.6 billion. Backlog
climbed 47% to $10 billion, its highest historical level.
Shares closed Wednesday at $62.47 and were inactive premarket.
The stock has climbed 11% since the beginning of the year.
Write to Melodie Warner at melodie.warner@dowjones.com
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