National Oilwell Reports Higher Earnings and Backlog
HOUSTON--(BUSINESS WIRE)--Feb. 8, 2001--National-Oilwell, Inc. (NYSE:NOI) today reported fourth quarter net income, excluding noncash special charges, of $18.6 million ($0.23 per diluted share), up from $11.9 million ($0.15 per diluted share) in the third quarter of 2000 and up from near breakeven results in the fourth quarter of 1999. Revenues for the fourth quarter of 2000 were $329.4 million, 15% above the third quarter of 2000 and 48% above the fourth quarter of 1999.
For the full year 2000, revenues and operating income before special charges increased to $1149.9 million and $78.2 million, compared to $839.6 million and $3.1 million in the prior year.
Backlog of capital equipment orders increased to $282 million at Dec. 31, 2000, up from $180 million at Sept. 30, 2000, and from $114 million at the end of 1999.
Fourth quarter results include a noncash after tax charge of $10.5 million, primarily to reflect writedowns of inventory related to discontinued product lines that were acquired in conjunction with the acquisition of IRI International Corporation on June 28, 2000. In the second quarter of 2000, the Company reported a special charge of $10.3 million after tax for one-time merger expenses (primarily investment banking, legal, accounting and integration costs) related to the IRI acquisition.
Joel Staff, chairman and CEO of National Oilwell, stated "Global market conditions affecting National Oilwell's capital equipment sales are better now than at any time since the early eighties. Unlike the conditions in 1997 and 1998, which were dominated by special purpose offshore newbuilds, current demand for our products is balanced between onshore and offshore contractors, and contains significant amounts of replacement capital equipment for existing rigs as well as equipment intended for new rigs. We believe the excesses of readily useable equipment that have existed within our industry over the last twenty years are now essentially gone, and that we are uniquely positioned to assist our customers in their needs for replacement equipment on existing rigs and for equipment and rigs that will add capacity to both land and offshore fleets."
Pete Miller, president and COO, added "The growth in our backlog of over $100 million in the fourth quarter is strong evidence of the need for capital equipment in the drilling industry. Our quoting activity is very high, and we anticipate further backlog growth in the first quarter of 2001. We have taken the necessary steps within our company to be able to satisfy the increasing requirements of our customers."
National Oilwell is a worldwide leader in the design, manufacture and sale of comprehensive systems and components used in oil and gas drilling and production, as well as in providing supply chain integration services to the upstream oil and gas industry.
Source: NOV, Inc.