UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported):
July 23, 2015
 
Cameron International Corporation
______________________________________________
(Exact Name of Registrant as Specified in its Charter)
 
Delaware
___________________
(State or other
jurisdiction of
incorporation)
1-13884
_________________
(Commission
File Number)
76-0451843
___________________
 (I.R.S. Employer
Identification No.)

1333 West Loop South, Suite 1700,
Houston, Texas
________________________________________
77027
 
_______________
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code:
(713) 513-3300

Not Applicable
_______________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
 


Item 2.02
Results of Operations and Financial Condition

On July 23, 2015 Cameron International Corporation (“Cameron”) issued a press release announcing its results for the second quarter ended June 30, 2015.  The press release is attached hereto as Exhibit 99.1 and is incorporated by reference into this item.
 
Item 9.01
Financial Statements and Exhibits.
 
(d)  Exhibits.
 
    The following is being furnished as an exhibit to this report:

Exhibit
Number
 
 
Exhibit Title or Description
Exhibit 99.1
 
Press Release of Cameron International Corporation, dated July 23, 2015 – Cameron Second Quarter Earnings.
 
Exhibit 99.1 to this report contains a “non-GAAP financial measure” as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. The non-GAAP financial measure reflects adjusted EPS.  A reconciliation of adjusted EPS to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) is included as an attachment to the press release.  The Company believes the presentation of adjusted EPS is useful to the Company’s investors because adjusted EPS can be used in analyzing the company’s on-going earnings potential and understanding certain significant items impacting the comparability of our results.  In addition, adjusted EPS is a widely used benchmark in the investment community.
 
The presentation of this additional information is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 
CAMERON INTERNATIONAL CORPORATION
 
By:         /s/    Charles M. Sledge                                    
 
       Charles M. Sledge
 
      Senior Vice President and Chief Financial Officer
 
Date: July 23, 2015

Cameron International Corporation
Current Report on Form 8-K
Dated July 23, 2015
EXHIBIT INDEX
 
Exhibit
Number
 
Exhibit Title or Description
 
Press Release of Cameron International Corporation, dated July 23, 2015 – Cameron Second Quarter Earnings.





Exhibit 99.1
 
Contact:           Scott Lamb
Vice President, Investor Relations
(713) 513-3344

CAMERON ANNOUNCES RESULTS FOR SECOND QUARTER OF 2015

· $0.83 fully diluted earnings per share excluding discontinued operations and other costs
· Results aided by strong execution and cost reduction
·
15% sequential-quarter increase in orders

HOUSTON, July 23, 2015 -- 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.
 
2

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
 

 
3

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
 

 
4

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  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
 
 
5

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
 
 
6

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



7
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Cooper Cameron Charts.
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Cooper Cameron Charts.