NOV's Net Income for 3Q07 Increased 15%
National Oilwell Varco (NYSE:NOV) reported that for the third quarter of 2007 it earned net income of $366 million, or $1.02 per fully diluted share. That's an increase of 15% compared to second quarter of 2007 net income of $318.5 million, or $0.89 per fully diluted share.
Earnings per share more than doubled from the third quarter of 2006, when the company earned $176.6 million, or $0.50 per fully diluted share.
Revenues for the third quarter of 2007 were $2,579.5 million, an increase of 8% from the second quarter of 2007 and an increase of 45% from the third quarter of 2006. Operating profit for the quarter was $545.4 million or 21.1% of sales. Operating profit flow-through, or the increase in operating profit divided by the increase in revenue, was 25% from the second quarter of 2007 to the third quarter of 2007, and was 32% from the third quarter of 2006 to the third quarter of 2007.
Backlog for capital equipment orders for the Company's Rig Technology segment at September 30, 2007 increased to $8.0 billion, compared to $7.2 billion at June 30, 2007. New orders during the quarter were a record $1.9 billion. The Company's backlog for capital equipment continued to increase as a result of strong demand for its drilling equipment, particularly for international offshore rigs.
"Our record backlog for drilling equipment is providing unprecedented visibility," said Pete Miller, chairman, president and CEO of NOV. "International demand for our equipment and services continues to build, particularly from national oil companies, while North American operators appear to be adopting a more cautious stance as we enter the fourth quarter."
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