By Michael Calia
Cameron International Corp. (CAM) said fourth-quarter profit
rose 1.2%, as a surge in costs largely obscured higher revenue.
The maker of oil and gas equipment also said it expected
full-year 2014 earnings of $3.60 to $4.00 a share. Analysts polled
by Thomson Reuters were expecting $3.78 a share. For the current
quarter, it forecast per-share adjusted earnings of 70 cents to 75
cents, while analysts are expecting 75 cents.
The fourth-quarter profit was in line with the company's
expectations, while the top line surpassed analysts' views. Cameron
said fourth-quarter earnings were $220.9 million, or 95 cents a
share, compared with $218.3 million, or 88 cents, in the like
year-earlier period. Excluding severance and restructuring costs,
among other charges, per-share earnings came in at $1.00, compared
with 95 cents a year ago. Total costs and expenses rose 22%,
however, to $2.62 billion. The company said in October that it had
expected adjusted per-share earnings of 95 cents to $1.00.
Revenue rose 21% to $2.94 billion in the latest reporting
quarter. Analysts had expected $2.75 billion.
Cameron has generated continued revenue growth in recent years,
with energy demand driving sales of its rig equipment. It also has
bought back shares at a steady clip--27 million shares last year at
a cost of $1.5 billion. The company said it plans to "continue to
be an aggressive repurchaser" of stock when market conditions
fit.
Cameron said it expects to close the $550 million sale of its
reciprocating compression division to General Electric Co. (GE),
announced earlier this month, in the third quarter. The company
said on Thursday that it expects to use proceeds of the sale,
estimated at $400 million net of tax, for share repurchases. It has
also said it is exploring strategic alternatives for its
centrifugal compression division.
Meantime, the company said the drilling and production business
increased 39% to $1.94 billion in the fourth quarter. Valves and
measurement posted a 5.3% decrease, and process and compression
systems reported 1.8% decrease.
Orders booked for the fourth quarter decreased 2.9% to $3.3
billion, and the backlog ended the year at a record $11.5 billion,
a 34% increase from the end of 2012.
Shares of Cameron were inactive at $56.73 in premarket
trading.
Write to Michael Calia at michael.calia@wsj.com
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