By Melodie Warner
Cameron International Corp.'s (CAM) second-quarter earnings fell
20% amid joint venture formation costs and slower-than-expected
revenue growth.
The oil-and-gas equipment maker lowered its full-year earnings
estimate to a range of $3.40 to $3.55 a share from its April
forecast of $3.50 to $3.70 a share. The company also forecast
current-quarter adjusted earnings of 80 cents to 85 cents a share
while analysts surveyed by Thomson Reuters expect $1.01 a
share.
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
margins.
Cameron reported a profit of $140.4 million, or 57 cents a
share, down from $174.6 million, or 70 cents, a year earlier.
Excluding joint venture formation costs, hedging activity,
acquisition-integration costs and other items, adjusted earnings
rose to 79 cents a share from 74 cents.
The company's April projection was earnings of 75 cents to 80
cents a share, below analysts' estimates at the time.
Revenue jumped 11% to $2.29 billion but fell short of the
analysts' $2.35 billion forecast.
Operating margin shrank to 9% from 10.9%.
Revenue from the drilling and production business rose 24% to
$1.44 billion. The valves and measurement segment posted a 4.3%
revenue decline. Process and compression-systems sales were down
7.3%.
Orders booked fell 9.4% to $2.33 billion from $2.57 billion.
Backlog climbed 41% to $10.5 billion and topped the $10 billion
record set in the first quarter.
Shares closed Wednesday at $63.57 and were inactive premarket.
The stock is up 13% so far this year.
Write to Melodie Warner at melodie.warner@wsj.com
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