Cameron’s 3Q profit slips

Cameron, a provider of flow equipment products, systems and services to worldwide oil and gas industries, on Thursday posted a net income of $187 million for the third quarter of 2015, a drop when compared to $225 million in the same period last year. 

Cameron reported fully diluted earnings per share, excluding discontinued operations and other costs, of $1.18 for the third quarter of 2015, compared to $1.17 for the same period of 2014.

On a GAAP basis, the company’s fully diluted earnings per share for the third quarter and first nine months of 2015 were $0.97 and $1.96, respectively, as compared to $1.11 and $2.68 for the same periods of 2014.

In addition, the company posted revenues of $2.2 billion compared to $2.68 billion in the corresponding period last year.

President and Chief Executive Officer, Scott Rowe, said, “Despite the severity of the global downturn in energy markets, which has been especially pronounced in North America, Cameron reported very strong operating results in the third quarter of 2015. These results validate the journey we began in 2014 to reduce the company’s fundamental cost structure and improve execution across our four segments.”

Rowe said, “The Company’s earnings for the third quarter of 2015 were comparable to those of the third quarter of 2014, as a near-tripling of operating income in the Subsea Segment, a 20% reduction in consolidated SG&A  and a lower tax rate were offset by reduced  operating income in the Company’s other three business segments.

“Revenues were down in all four segments relative to the year-ago quarter, reflecting weaker demand in the company’s served markets.”

Acquired by Schlumberger

On August 26, 2015, Schlumberger Limited and Cameron jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies. The transaction is subject to Cameron shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur in the first quarter of 2016.

Outlook

Rowe said, “Although our operational improvements partially mitigated the third-quarter impact of the cyclical downturn, we have seen no easing of market pressures and – as a result – we expect operating income margins to decline sequentially in the fourth quarter in each of our four segments.  In the face of market headwinds, we will maintain our relentless focus on the things we can control: execution, customer relationships, cost reduction and technology.” 

 

 

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