Cameron has reported net income of $149.1 million, or $0.67 per diluted share, for the quarter ended December 31, 2008, compared with net income in the prior year's fourth quarter of $125.9 million, or $0.54 per diluted share. The fourth quarter 2008 results include a non-cash, after-tax charge of $16.5 million, or $0.08 per diluted share, associated with the previously announced termination of the Company's U.S. pension plans.
The fourth quarter 2007 results included a non-cash, after-tax charge of $22.1 million, or $0.10 per share, associated with the pension plan termination, as well as a reduction in income tax expense of $7.1 million, or $0.03 per share, related to certain tax gains. Excluding the above items, the Company's earnings per diluted share were $0.75 for the fourth quarter of 2008, up from $0.61 for the fourth quarter of 2007.
Revenues up 13 percent for quarter, 25 percent for year
Revenues for the fourth quarter of 2008 were $1.52 billion, up 13 percent from the prior year and one percent sequentially. Revenues for the year were a record $5.85 billion, up 25 percent from 2007’s record $4.67 billion. Net income per diluted share for 2008 was $2.60,
Cameron President and Chief Executive Officer Jack B. Moore said that the Company's record results reflect a solid performance by Cameron's employees across all business lines, even given the slowdown in activity experienced in the last several months of the year.
"We entered 2008 expecting our greatest challenge to be delivering on the record backlogs in our businesses,” Moore said. "Our people fulfilled our expectations on that front, and have performed well in dealing with the slowdown we are now seeing."
"Orders, backlog reflect fourth quarter weakness in markets Orders booked in 2008’s fourth quarter totaled $1.17 billion, down from the $1.49 billion of a year ago, due to declines in Drilling & Production Systems (DPS) and Compression Systems, although Valves & Measurement’s (V&M) fourth quarter orders were up from the prior year.
"Orders for the full year were a record $7.54 billion, up 40 percent from 2007’s $5.38 billion, as DPS's orders were up by more than 50 percent for the year. Moore noted that the order gains were driven by several large subsea projects and several sizable drilling bookings.
"Total backlog at year-end was $5.61 billion, up 31 percent from the $4.27 billion of a year ago, but down nine percent from the record $6.15 billion backlog at the end of the third quarter of 2008. "As in recent years, but even more importantly, in a market like today's, these backlog levels provide a meaningful degree of visibility to our results and allow us to more effectively manage our capacity utilization in our manufacturing and service facilities," Moore said.
"Cash flow remains healthy, supports variety of uses Moore said that Cameron's cash flow from operations totaled nearly $988 million in
"Moore said that he expects cash flow in 2009 to once again be more than adequate to fund the Company's needs. "We expect to spend approximately $200 million on capital expenditures this year," he noted, "including about $100 million to complete the expansion of
"2009 earnings to decline in face of difficult markets, lower customer spending Moore said Cameron currently expects its 2009 earnings to be in the range of $1.75 to $2.00 per diluted share, depending on a variety of factors. "While our year-end backlog provides a measure of visibility toward a base level of revenues and earnings, there are several issues that are likely to affect results for our businesses," he said. "These include the level and timing of customer spending, which will be affected by oil and gas prices, cash flow and credit access; the
Moore said Cameron's first quarter 2009 earnings are expected to be approximately $0.59 to $0.62 per diluted share, with the primary factors being execution, pricing and cost impacts, and the level of shorter-cycle business that customers choose to pursue in the near term.
"While 2009 will be a challenging year across all of our business lines," he said, "Cameron is stronger than we have ever been when entering a down-cycle. Our combination of short- and long-cycle businesses, record backlog, strong cash position, cash generation capability and disciplined approach to capital allocation will allow us to take advantage of opportunities during this downturn, maintain our leadership positions and emerge as an even better competitor in our markets."
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