Cameron reported net income of $99.9 million, or $0.40 per diluted share, for the quarter ended December 31, 2011, compared with net income in the prior year's fourth quarter of $164.6 million, or $0.66 per diluted share. The fourth quarter 2011 results include after-tax charges of $90.5 million, or $0.37 per share, primarily related to the Deepwater Horizon matter. The fourth quarter 2010 results included after-tax charges of $6.2 million, or $0.03 per share, primarily related to costs associated with Deepwater Horizon and the continued integration of the NATCO Group Inc. Excluding the above items, the Company's earnings per diluted share were $0.77 for the fourth quarter of 2011, compared with $0.69 for the fourth quarter of 2010.
Revenues up 12 percent for quarter, 13 percent for year; both represent new highs
Revenues for the fourth quarter of 2011 were a record $2.03 billion, up more than 12 percent from the prior year, and revenues for the year were $6.96 billion, up more than 13 percent from 2010's $6.13 billion, also a new record. Excluding charges, earnings per diluted share for 2011 were $2.67, compared to $2.42 for 2010. Including charges, earnings per diluted share were $2.09 for 2011 and $2.27 for 2010.
Cameron Chairman, President and Chief Executive Officer Jack B. Moore commented that each segment saw record revenues in 2011 reflecting the investments Cameron has made in each of its businesses over the last three years.
Record orders; backlog nearly $6.0 billion at year-end
Orders booked in the fourth quarter of 2011 totaled $1.91 billion, up from $1.71 billion a year ago. Year-over-year orders were higher in all three of the Company's operating segments. Full-year orders totaled $7.83 billion, up 35 percent from 2010, and represented the highest order year in the Company's history.
Moore noted that record annual orders in Drilling and Surface Systems drove the year-over-year improvement in Drilling & Production Systems (DPS), while each of Valves & Measurement's (V&M) businesses saw record annual orders.
Moore said, "The Process & Compression (PCS) segment saw record orders in the fourth quarter, as well as on an annual level," and added, "We continue to be pleased with the balance in our business lines and the opportunities that our diverse product offerings provide."
Cash flow to improve, capital spending to increase in 2012
Cameron's cash flow from operations totaled $329 million in the fourth quarter. Moore said, "Cameron invested over $600 million in working capital in 2011 to help support the record sales and orders we experienced in 2011, but we expect this build to moderate significantly in 2012."
"We spent $388 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 increase to approximately $500 million during 2012, saying, "We see a mix of needs and opportunities for our businesses during the year that could push our capital expenditures to a new record. The majority will be targeted at expanding our infrastructure in Brazil, growing our aftermarket support bases for Drilling in the North Sea and Far East and adding to Cameron's global fleet of equipment and services in the unconventional shale markets."
2012 earnings expected to reach $3.20 to $3.30 per share
Moore said Cameron currently expects its 2012 earnings to be in the range of $3.20 to $3.30 per diluted share, excluding charges, and first quarter 2012 earnings, excluding charges, are expected to be approximately $0.50 to $0.55 per diluted share.
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