Cameron 2012 Earnings Rise (USA)

Cameron reported earnings per share for the fourth quarter of 2012 of $0.95 excluding charges. This compares to earnings per share for the fourth quarter of 2011 of $0.77 excluding charges. After-tax charges for the fourth quarter of 2012 were $0.07 per share. After-tax charges for the fourth quarter 2011 were $0.37 per share primarily related to the Deepwater Horizon matter.

The Company reported GAAP net income of $218.3 million for the fourth quarter of 2012, or $0.88 per diluted share. Earnings per diluted share increased 120 percent compared to the fourth quarter 2011 earnings of $0.40 per diluted share. For the year the Company reported GAAP net income of $750.5 million, or $3.02 per diluted share. Earnings per diluted share increased 44 percent compared to full year 2011 earnings of $2.09 per diluted share.

Record revenues up sequentially for quarter and year; increase in every segment

Revenues of $2.4 billion for the quarter were at a record level, up nearly 20 percent from $2.0 billion a year ago. Record revenues for the year of $8.5 billion exceeded 2011 revenues of $7.0 billion by over 22 percent. Revenues were up sequentially for all three segments for both the quarter and the year. Quarterly and annual income before income taxes were at record levels. Quarterly income before income taxes was $273.4 million, up over 117 percent from $125.9 million a year ago. For the year, 2012 income before income taxes was $938.0 million up 44 percent from $651.1 million in 2011. Cameron Chairman and Chief Executive Officer Jack B. Moore said, “Both quarter and annual year-over-year revenue increases were due to double digit revenue gains in all three of the Company’s segments.”

Record orders and backlog

Orders booked in the fourth quarter of 2012 totaled a record $3.4 billion, up from $1.9 billion a year ago, representing an increase of about 80 percent. Full-year orders totaled $10.9 billion, up over 39 percent from $7.8 billion in 2011 and represented the highest order year in the Company’s history.

Moore noted record quarterly orders in the Drilling and Surface Systems businesses within the DPS segment and the V&M segment. These same business segments also achieved record annual orders. Moore said, “The Drilling Systems business saw unprecedented strength for the quarter, including 21 deepwater BOP awards as well as its previously announced first full deepwater rig package order. DPS accomplished this record level of orders without any large subsea awards.”

Cameron’s backlog at the end of the fourth quarter was $8.6 billion, up from the beginning of the year level of $6.0 billion. Moore noted that this is a record backlog for the Company reflecting over 43 percent growth from a year ago.

Record cash flow from operations while capital investments continue

Cameron’s cash flow from operations totaled a record $544.7 million in the fourth quarter. Moore said, “We were pleased with our working capital management in the fourth quarter which resulted in strong annual cash flow of nearly $683.0 million.”

“We spent $427.2 million in capital expenditures during the year,” Moore said, “with an emphasis on enhancing our aftermarket reach and capability and meeting demands in unconventional drilling.” Moore added that he expects Cameron’s capital spending to remain around the $500 million level during 2013, saying, “We see a mix of needs and opportunities for our businesses during the year that continue to require a strong capital spending commitment. The majority will be targeted at expanding our Drilling infrastructure and other capacity needs.”

2013 earnings expected to reach $3.70 to $3.95 per share

Moore said Cameron currently expects its 2013 earnings to be in the range of $3.70 to $3.95 per diluted share, excluding charges. “Our 2013 earnings are expected to be another record. Earnings for the year will ultimately be influenced by the level of North American activity as well as our ability to execute on our record backlog,” Moore said. First quarter 2013 earnings, excluding charges, are expected to reflect the typical seasonal decline from the fourth quarter and should approximate $0.70 to $0.75 per diluted share. “The timing of project deliveries will heavily influence our earnings for the first quarter,” Moore added.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.

[mappress]
Press Release, January 31, 2013