National Oilwell Varco reported that for its second quarter ended June 30, 2011 it earned net income of $481 million, or $1.13 per fully diluted share. Earnings per share increased 18 percent compared to both the second quarter of 2010 and the first quarter of 2011. Excluding transaction charges of $4 million pre-tax, second quarter 2011 net income was $484 million, or $1.14 per fully diluted share.
The Company's revenues for the second quarter of 2011 were $3.51 billion, which improved 12 percent from the first quarter of 2011 and 19 percent from the second quarter of 2010. Operating profit for the second quarter of 2011 was $712 million or 20.3 percent of sales, compared to 20.2 percent in the second quarter of 2010 and 20.0 percent in the first quarter of 2011, excluding transaction charges and Libya asset write downs from all periods. Year-over-year second quarter operating profit increased 20 percent, excluding transaction charges. Sequentially, second quarter operating profit increased 13 percent, resulting in operating profit flow-through (change in operating profit divided by the change in revenue) of 23 percent, excluding transaction and restructuring charges.
During the second quarter of 2011 the Company's Rig Technology segment booked $2.96 billion in new orders. Backlog for capital equipment orders for the Company's Rig Technology segment was $7.74 billion at June 30, 2011, up 26 percent from the end of the first quarter.
Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, "Our Company achieved strong earnings this quarter, thanks to the hard work of our dedicated employees, who provide great service, quality products, and remarkable technology to the oil and gas industry worldwide, every day. All three segments posted higher sequential and year-over-year revenues, and we were pleased by the record level of bookings into our capital equipment backlog, which increased again this quarter for both land and offshore rigs. The Company continues to expand organically and pursue promising acquisition opportunities, supported by its substantial financial resources and strong technology portfolio."
Second quarter revenues for the Rig Technology segment were $1.89 billion, an increase of 18 percent from the first quarter of 2011 and an increase of 13 percent from the second quarter of 2010. Operating profit for this segment was $517 million, or 27.3 percent of sales. Revenue out of backlog for the segment increased 24 percent sequentially and increased 11 percent year-over-year, to $1.39 billion for the second quarter of 2011.
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