National Oilwell Reports Fourth Quarter and 2002 Earnings
National-Oilwell, Inc. reported fourth quarter and full year 2002 revenues and net income. Net income was $17.2 million, or $0.21 per diluted share, for the fourth quarter compared to $17.8 million, or $0.22 per diluted share, in the third quarter. Revenues were $393.6 million for the period compared to third quarter revenues of $366.9 million. Full year revenues and net income of $1,521.9 million and $73.1 million, $0.89 per diluted share, compare to 2001 results of $1,747.5 million and $104.1 million, $1.27 per diluted share.
Backlog of capital equipment orders totaled $364 million at Dec. 31, 2002, including $170 million attributable to the acquisition of Hydralift. Excluding any Hydralift effect, revenues from backlog for the fourth quarter were $91 million and for the full year 2002 were $390 million, with order additions to the backlog for those same periods of $54 million and $199 million.
Pete Miller, president and CEO of National Oilwell, stated "Fourth quarter financial results were generally in line with the prior quarter, as were activity levels. Operating margins for our Products and Technology Group and our Distribution Services Group were comparable with results achieved in the prior two quarters. We are pleased with the overall results for the year, which evidenced our ability to remain solidly profitable in a depressed drilling market, and continued our long-term strategy of consolidating acquisitions that enhance our performance throughout the cycle. Indicative of an improving market outlook, we are beginning to experience increased activity in our Distribution Services business, as well as in our non-capital equipment business. Additionally, we continue to be very excited about the future financial impact from the addition of our two recent acquisitions, Hydralift and Mono Pumps."
The Company commented that the acquisitions of Hydralift and Mono Pumps and consolidated reporting of the Chinese joint venture are expected to increase revenues in 2003 by approximately $425 million and pre-tax income by approximately $30 - $35 million. The Mono Pump acquisition also increased common shares outstanding by 3.2 million.