National-Oilwell, Inc. reported second quarter net income of $17.0 million ($0.21 per diluted share) compared to $25.3 million ($0.31 per diluted share) in the second quarter of 2001. Revenues for the quarter were $372.4 million, compared to $434.6 in the second quarter of 2001. Pete Miller, Chairman, President and CEO of National Oilwell, stated "Our Products and Technology Group revenues and operating income declined 7% and 15% sequentially, as decreased drilling activity in Canada especially impacted our downhole tools sales and rentals business. We were encouraged that new orders for capital equipment during the second quarter increased to $71 million compared to only $30 million in the first quarter. Backlog at June 30 was $278 million compared to $300 million at March 31, 2002.
“We are very pleased with the performance of our Distribution Services Group, which achieved 1% and 3% increases in revenues and operating profit over the first quarter. While the worldwide rig count declined 13% over the prior quarter, both our U.S. and international operations contributed to the revenue growth.
"Based on projected activity levels in our industry, we believe the second quarter represents the low point in 2002 for our operating profit. Quotations for international capital equipment sales remain active, and our substantial non-capital business will improve with an expected increase in worldwide rig activity."