HOUSTON, July 23, 2015 /PRNewswire/ -- Cameron (NYSE:
CAM) today reported fully diluted earnings per share, excluding
discontinued operations and other costs, of $0.83 for the second quarter of
2015, compared to $0.95 for the
same period of 2014.
Other costs in the second quarter of 2015 amounted to
$37 million, or $0.12 per share, as detailed in an accompanying
table.
On a GAAP basis, the Company's fully diluted earnings per share
for the second quarter and first six months of 2015 were
$0.73 and $0.98, respectively, as compared to $1.08
and $1.57 for the same periods of
2014.
Commenting on the Company's performance in the second quarter of
2015, Chairman and Chief Executive Officer Jack B. Moore, said, "The Company reported solid
earnings and orders despite challenging market conditions.
Our financial results reflected outstanding execution across the
enterprise when compared to the year ago quarter, driven by our
Subsea and Drilling segments and a 16% decline in our SG&A
expense."
Orders
Consolidated orders increased 15% on a
sequential-quarter basis from the first to the second quarter of
2015, reflecting the breadth and competitive differentiation of
Cameron's portfolio of
businesses. Specifically, the sequential-quarter gains
occurred in three of the Company's four reporting segments and
amounted to 32% in Subsea, 23% in Drilling and 5% in Surface.
Subsea processing technology continued to gain traction during the
second quarter, with the segment recording a significant award for
subsea boosting in the Gulf of Mexico. The segment also
recorded a $330 million award for
subsea production equipment for a project offshore North Africa and, separately, a front-end
engineering and design contract for a proposed floating LNG
development offshore northwest Australia.
Cash Flow from Operations and Capital Program
The
Company ended the quarter with cash, cash equivalents and
short-term investments totaling $1.7
billion and a net debt to total capital ratio of 17%, which
gives the Company significant flexibility to deal with the
uncertainty presented by this downturn, execute on its strategic
initiatives and position itself for future growth.
Cameron's capital expenditures
totaled $41 million in the second
quarter of 2015, as compared to $73
million in the second quarter of 2014. As of the end
of the second quarter of 2015, approximately $285 million remained available under the
Company's existing share purchase authorization.
2015 Outlook
Moore said, "Although the industry
downturn continues to pose many challenges, we believe the pace of
the decline in customer spending has begun to moderate. In
this environment, we remain focused on the things we can control:
the ongoing systemic reduction in our cost structure, execution,
customer relationships and technology advancement. We believe
this focus will ensure that the company generates long-term value
for our stakeholders."
Cameron (NYSE: CAM) is a
leading provider of flow equipment products, systems and services
to worldwide oil and gas industries.
In addition to the historical data contained herein, this
document includes forward-looking statements regarding generation
of long-term value, made in reliance upon the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
The Company's actual results may differ materially from those
described in forward-looking statements. Such statements are
based on current expectations of the Company's performance and are
subject to a variety of factors, some of which are not under the
control of the Company, which can affect the Company's results of
operations, liquidity or financial condition. Such factors
may include overall demand for, and pricing of, the Company's
products, particularly as affected by North American activity; the
size and timing of orders; the Company's ability to successfully
execute the large subsea and drilling systems projects it has been
awarded; the possibility of cancellations of orders; the Company's
ability to convert backlog into revenues on a timely and profitable
basis; the impact of acquisitions the Company has made or may make;
changes in the price of (and demand for) oil and gas in both
domestic and international markets; raw material costs and
availability; political and social issues affecting the countries
in which the Company does business; fluctuations in currency
markets worldwide; and variations in global economic
activity. In particular, current and projected oil and gas
prices historically have generally directly affected customers'
spending levels and their related purchases of the Company's
products and services. Additionally, changes in oil and gas
price expectations may impact the Company's financial results due
to changes it may make in its cost structure, staffing or spending
levels.
Because the information herein is based solely on data currently
available, it is subject to change as a result of changes in
conditions over which the Company has no control or influence, and
should not therefore be viewed as assurance regarding the Company's
future performance. Additionally, the Company is not
obligated to make public indication of such changes unless required
under applicable disclosure rules and regulations.
|
Cameron
Unaudited Consolidated Condensed Results of Operations
($ and shares in millions except per share data)
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,222
|
|
$ 2,570
|
|
$ 4,495
|
|
$ 4,899
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
(exclusive of depreciation and amortization shown separately
below)
|
|
1,585
|
|
1,850
|
|
3,193
|
|
3,540
|
|
Selling and
administrative expenses
|
|
279
|
|
333
|
|
565
|
|
651
|
|
Depreciation and
amortization
|
|
89
|
|
88
|
|
178
|
|
173
|
|
Interest,
net
|
|
33
|
|
30
|
|
71
|
|
62
|
|
Other costs (gains),
net
|
|
37
|
|
(6)
|
|
614
|
|
43
|
|
Total costs and
expenses
|
|
2,023
|
|
2,295
|
|
4,621
|
|
4,469
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
199
|
|
275
|
|
(126)
|
|
430
|
|
Income tax
provision
|
|
(47)
|
|
(65)
|
|
(100)
|
|
(110)
|
|
Income (loss) from
continuing operations
|
|
152
|
|
210
|
|
(226)
|
|
320
|
|
Income from
discontinued operations, net of income taxes
|
|
3
|
|
23
|
|
432
|
|
28
|
|
Net income
|
|
155
|
|
233
|
|
206
|
|
348
|
|
Less: Net income
attributable to noncontrolling interests
|
|
15
|
|
12
|
|
17
|
|
16
|
|
Net
income attributable to Cameron stockholders
|
|
$ 140
|
|
$ 221
|
|
$ 189
|
|
$ 332
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Cameron stockholders:
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$ 137
|
|
$ 198
|
|
$ (243)
|
|
$ 304
|
|
Income from
discontinued operations
|
|
3
|
|
23
|
|
432
|
|
28
|
|
Net income
attributable to Cameron stockholders
|
|
$ 140
|
|
$ 221
|
|
$ 189
|
|
$ 332
|
|
Earnings (loss) per
common share attributable to Cameron stockholders:
|
|
|
|
|
|
|
|
|
|
Basic -
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$ 0.71
|
|
$ 0.97
|
|
$ (1.27)
|
|
$ 1.46
|
|
Discontinued operations
|
|
0.02
|
|
0.11
|
|
2.25
|
|
0.13
|
|
Basic earnings per
share
|
|
$ 0.73
|
|
$ 1.08
|
|
$ 0.98
|
|
$ 1.59
|
|
|
|
|
|
|
|
|
|
|
Diluted -
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$ 0.71
|
|
$ 0.97
|
|
$ (1.27)
|
|
$ 1.44
|
|
Discontinued operations
|
|
0.02
|
|
0.11
|
|
2.25
|
|
0.13
|
|
Diluted earnings per
share
|
|
$ 0.73
|
|
$ 1.08
|
|
$ 0.98
|
|
$ 1.57
|
|
Shares used in
computing earnings per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
191
|
|
204
|
|
192
|
|
209
|
|
Diluted
|
|
192
|
|
205
|
|
192
|
|
211
|
|
Cameron
Consolidated Condensed Balance Sheets
($ millions)
|
|
|
|
|
|
|
June
30,
2015
|
|
December
31, 2014
|
|
(unaudited)
|
|
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,295
|
|
$
1,513
|
|
Short-term
investments
|
436
|
|
113
|
|
Receivables,
net
|
2,096
|
|
2,389
|
|
Inventories,
net
|
2,938
|
|
2,929
|
|
Other current
assets
|
390
|
|
391
|
|
Assets of
discontinued operations
|
–
|
|
217
|
|
Total current
assets
|
7,155
|
|
7,552
|
|
|
|
|
|
Plant and equipment,
net
|
1,814
|
|
1,964
|
|
Goodwill
|
1,880
|
|
2,461
|
|
Intangibles,
net
|
683
|
|
728
|
|
Other
assets
|
200
|
|
187
|
|
Total
Assets
|
$ 11,732
|
|
$
12,892
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
Short-term
debt
|
$
31
|
|
$
263
|
|
Accounts payable and
accrued liabilities
|
2,933
|
|
3,748
|
|
Accrued income
taxes
|
298
|
|
168
|
|
Liabilities of
discontinued operations
|
–
|
|
90
|
|
Total current
liabilities
|
3,262
|
|
4,269
|
|
|
|
|
|
Long-term
debt
|
2,813
|
|
2,819
|
|
Deferred income
taxes
|
180
|
|
193
|
|
Other long-term
liabilities
|
167
|
|
167
|
|
Total
liabilities
|
6,422
|
|
7,448
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Common stock, par
value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30,
2015 and December 31, 2014
|
3
|
|
3
|
|
Capital in excess of
par value
|
3,242
|
|
3,255
|
|
Retained
earnings
|
5,820
|
|
5,631
|
|
Accumulated other
elements of comprehensive income (loss)
|
(693)
|
|
(540)
|
|
Less: Treasury stock,
71,671,246 shares at June 30, 2015 (68,139,027 shares at December 31,
2014)
|
(3,955)
|
|
(3,794)
|
|
Total Cameron stockholders' equity
|
4,417
|
|
4,555
|
|
Noncontrolling interests
|
893
|
|
889
|
|
Total equity
|
5,310
|
|
5,444
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$ 11,732
|
|
$ 12,892
|
|
Cameron
Unaudited Consolidated Condensed Statements of Cash Flows
($ millions)
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 155
|
|
$ 233
|
|
$ 206
|
|
$ 348
|
|
Adjustments to
reconcile net income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
|
|
|
Asset impairment and
other charges
|
|
10
|
|
4
|
|
563
|
|
44
|
|
Pre-tax gain on sale
of Centrifugal Compression business
|
|
–
|
|
(95)
|
|
(681)
|
|
(95)
|
|
Depreciation
|
|
77
|
|
71
|
|
152
|
|
139
|
|
Amortization
|
|
12
|
|
19
|
|
26
|
|
38
|
|
Non-cash
stock compensation expense
|
|
13
|
|
15
|
|
23
|
|
30
|
|
Gain from
remeasurement of prior interest in equity method
investment
|
|
–
|
|
(8)
|
|
–
|
|
(8)
|
|
Deferred income taxes
and tax benefit of employee stock compensation plan
transactions
|
|
(14)
|
|
34
|
|
(15)
|
|
17
|
|
Changes in assets and
liabilities, net of translation, and non-cash items:
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
104
|
|
171
|
|
252
|
|
111
|
|
Inventories
|
|
35
|
|
(53)
|
|
(70)
|
|
(228)
|
|
Accounts
payable and accrued liabilities
|
|
(284)
|
|
(257)
|
|
(755)
|
|
(471)
|
|
Other
assets and liabilities, net
|
|
(80)
|
|
79
|
|
134
|
|
114
|
|
Net cash provided by (used for) operating activities
|
|
28
|
|
213
|
|
(165)
|
|
39
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Pre-tax net proceeds received from sale of Centrifugal Compression
business
|
|
–
|
|
547
|
|
832
|
|
547
|
|
Proceeds from sales and maturities of short-term
investments
|
|
252
|
|
18
|
|
400
|
|
23
|
|
Purchases of short-term investments
|
|
(264)
|
|
(33)
|
|
(723)
|
|
(38)
|
|
Capital expenditures
|
|
(41)
|
|
(73)
|
|
(130)
|
|
(178)
|
|
Acquisitions
|
|
–
|
|
(18)
|
|
–
|
|
(18)
|
|
Proceeds from sales of plant and equipment
|
|
2
|
|
4
|
|
7
|
|
10
|
|
Net cash provided by (used for) investing activities
|
|
(51)
|
|
445
|
|
386
|
|
346
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Issuance of senior notes
|
|
–
|
|
500
|
|
–
|
|
500
|
|
Debt issuance costs
|
|
–
|
|
(4)
|
|
–
|
|
(4)
|
|
Short-term loan borrowings (repayments), net
|
|
(11)
|
|
(321)
|
|
(212)
|
|
9
|
|
Purchase of treasury stock
|
|
(13)
|
|
(303)
|
|
(195)
|
|
(1,205)
|
|
Contribution to noncontrolling interest owners
|
|
18
|
|
–
|
|
18
|
|
–
|
|
Proceeds from stock option exercises, net of tax payments from
stock compensation plan transactions
|
|
3
|
|
16
|
|
(5)
|
|
25
|
|
Excess tax benefits from employee stock
compensation plan transactions
|
|
–
|
|
4
|
|
1
|
|
6
|
|
Principal payments on capital leases
|
|
(3)
|
|
(5)
|
|
(9)
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
Net cash
used for financing activities
|
|
(6)
|
|
(113)
|
|
(402)
|
|
(677)
|
|
Effect of translation
on cash
|
|
2
|
|
8
|
|
(37)
|
|
4
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(27)
|
|
553
|
|
(218)
|
|
(288)
|
|
Cash and cash
equivalents, beginning of period
|
|
1,322
|
|
972
|
|
1,513
|
|
1,813
|
|
Cash and cash
equivalents, end of period
|
|
$ 1,295
|
|
$ 1,525
|
|
$ 1,295
|
|
$ 1,525
|
|
Cameron
Unaudited Supplemental Segment Financial Data
($ millions)
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Subsea
|
|
$ 658
|
$ 735
|
$ 1,289
|
$ 1,416
|
|
Surface
|
|
510
|
613
|
1,053
|
1,151
|
|
Drilling
|
|
719
|
766
|
1,445
|
1,433
|
|
Valves and Measurement (V&M)
|
|
381
|
539
|
809
|
1,039
|
|
Elimination of intersegment revenues
|
|
(46)
|
(83)
|
(101)
|
(140)
|
|
Consolidated revenues
|
|
$ 2,222
|
$ 2,570
|
$ 4,495
|
$ 4,899
|
|
|
|
|
|
|
|
Segment operating
income before interest and income taxes:
|
|
|
|
|
|
|
Subsea
|
|
$
67
|
$
46
|
$ 124
|
$
75
|
|
Surface
|
|
69
|
108
|
161
|
199
|
|
Drilling
|
|
119
|
97
|
254
|
164
|
|
V&M
|
|
44
|
110
|
89
|
208
|
|
Elimination of intersegment earnings
|
|
(7)
|
(24)
|
(23)
|
(36)
|
|
Segment
operating income before interest and income taxes
|
|
292
|
337
|
605
|
610
|
|
|
|
|
|
|
|
Corporate
Items:
|
|
|
|
|
|
|
Corporate expenses
|
|
(23)
|
(38)
|
(46)
|
(75)
|
|
Interest,
net
|
|
(33)
|
(30)
|
(71)
|
(62)
|
|
Other (costs) gains,
net
|
|
(37)
|
6
|
(614)
|
(43)
|
|
Consolidated income (loss) from continuing operations before income
taxes
|
|
$ 199
|
$ 275
|
$ (126)
|
$ 430
|
|
|
|
|
|
|
|
Orders:
|
|
|
|
|
|
|
Subsea
|
|
$ 742
|
$ 596
|
$ 1,302
|
$ 1,025
|
|
Surface
|
|
471
|
619
|
921
|
1,255
|
|
Drilling
|
|
327
|
639
|
594
|
1,456
|
|
V&M
|
|
369
|
517
|
757
|
1,053
|
|
Consolidated orders
|
|
$ 1,909
|
$ 2,371
|
$ 3,574
|
$ 4,789
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
Backlog (at end of
period):
|
|
2015
|
|
2014
|
|
2014
|
|
Subsea
|
|
$ 4,178
|
|
$ 4,263
|
|
$ 4,763
|
|
Surface
|
|
970
|
|
1,025
|
|
1,146
|
|
Drilling
|
|
2,405
|
|
3,327
|
|
3,922
|
|
V&M
|
|
809
|
|
921
|
|
1,026
|
|
Consolidated backlog
|
|
$ 8,362
|
|
$ 9,536
|
|
$ 10,857
|
|
Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions, except per share amounts)
|
|
|
Three Months
Ended
June 30,
2015
|
|
After
Tax
|
|
Diluted
EPS(1)
|
|
Net income
attributable to Cameron from continuing operations
|
$
137
|
|
$
0.71
|
|
Adjustments:
|
|
|
|
|
Facility closures and
severance
|
13
|
|
|
|
Asset
charges
|
6
|
|
|
|
Loss on Angola
currency devaluation
|
6
|
|
|
|
All other
|
(2)
|
|
|
|
Net income
attributable to Cameron, excluding charges
|
$
160
|
|
$ 0.83
|
|
|
|
|
|
(1)
Based on 192 million diluted shares
|
|
|
|
|
Three Months
Ended
June 30,
2014
|
|
After
Tax
|
|
Diluted
EPS(1)
|
|
Net income
attributable to Cameron from continuing operations
|
$
198
|
|
$
0.97
|
|
Adjustments:
|
|
|
|
|
Facility closures and
severance
|
2
|
|
|
|
Gain from remeasurement of prior interest in equity method
investment
|
(6)
|
|
|
|
Net income
attributable to Cameron, excluding charges
|
$
194
|
|
$ 0.95
|
|
|
|
|
|
(1)
Based on 205 million diluted shares
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cameron-announces-results-for-second-quarter-of-2015-300117571.html
SOURCE Cameron