On a sequential basis, revenue of $62.9 million was up 9%, operating income of $13.4 million was up 28%, and net income of $9.0 million, was up 15%. Excluding the first quarter income tax credit, second quarter net income was up 27% sequentially. Compared to the second quarter of 2003, revenue was up 15%, operating income was up 38%, and net income was up 46%.
Chris Seaver, President and CEO, stated, "Our premium connection segment generated strong bookings for the second consecutive quarter, which resulted in higher revenue and operating income. We believe those results also reflect increased plant efficiencies from the capital improvement program we financed with the proceeds of our IPO in late 2000. Scheduled shipments for the international market plus the gradually improving domestic market should increase our profitability in the second half of the year, compared with the first half."
Premium Connection Segment
Second quarter revenue for Hydril's premium connection segment increased 18% sequentially to $39.6 million and operating income increased 36% to $12.8 million. The increase in revenue and operating income was driven by higher demand for our products in both international and domestic markets, which resulted in increased throughput and higher plant efficiencies.
Pressure Control Segment
Second quarter revenue for Hydril's pressure control segment decreased 3% sequentially to $23.3 million and operating income decreased 6% to $4.5 million. Aftermarket revenue was down 6% sequentially to $14.7 million, while capital equipment revenue increased 3% to $8.7 million from the first quarter of 2004. At the end of the quarter, the capital equipment backlog stood at $14 million, up from $12 million from the preceding quarter, but down from $19 million as of June 30, 2003.
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