USA: Dril-Quip Releases Third Quarter Results

Dril-Quip, Inc.  announced net income of $23.3 million, or $0.58 per diluted share for the three months ended September 30, 2011, versus net income of $27.7 million, or $0.69 per diluted share for the third quarter of 2010.

Total revenues were $155.0 million during the quarter ended September 30, 2011 compared to $140.1 million for the same period in 2010. The increase in revenues resulted primarily from an increase in subsea equipment sales of $24.1 million and an increase in service revenues of $1.2 million offset by a decrease of $10.3 million in offshore rig equipment revenues.

For the nine months ended September 30, 2011, net income was $67.1 million, or $1.67 per diluted share, compared with net income of $81.4 million, or $2.03 per diluted share, for the same period in 2010. Revenues for the nine months ended September 30, 2011 were $429.7 million, up from $424.7 million for the same period last year.

In addition, the Company announced that its backlog at September 30, 2011 was approximately $730 million, compared to approximately $625 million at September 30, 2010. The Company expects its earnings per share for the quarter ending December 31, 2011 to approximate $0.53 to $0.63 per diluted share, excluding any unusual or special charges. In connection with the previously announced retirement of J. Mike Walker on October 20, 2011, the Company will recognize a pre-tax expense of $4.7 million during the quarter ending December 31, 2011 related to severance payments under Mr. Walker’s employment agreement.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment, which is well suited for use in deepwater, harsh environment and severe service applications.

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Source: Dril-Quip,November 06 , 2011