National Oilwell Reports Third Quarter Earnings
National-Oilwell, Inc. reported net income of $22.7 million ($0.27 per diluted share) for its third quarter ended Sept. 30, 2003.
Revenues and operating income compare favorably sequentially and to the prior year period. Contributing to these improvements are increased activity levels and the successful integration of acquisitions made at the beginning of the year.
Backlog of capital equipment at the end of the third quarter was $340 million compared to $366 million at the end of the second quarter. Revenues from capital equipment for the quarter totaled $147 million, down 5% from the prior quarter, and incoming orders declined to $121 million from $153 million.
Capital spending was $6.3 million, compared to $7.8 for the second quarter of the year and approximately 70% of the third quarter depreciation and amortization charge.
Products and Technology Group
Products and Technology revenues and operating income increased by $7.2 and $4.0 million over the second quarter, led by improvements in downhole tools, drilling spares and pump expendables. Operating income approximated 13% of revenues, as favorable product mix led to strong incremental improvement for the quarter.
Distribution Services Group
Improved land drilling activity throughout North America resulted in a $17.7 million revenue increase over the prior quarter. Operating income was negatively impacted by product mix and higher operating costs. Operating margin approximated 2.3% of revenues compared to 2.9% in the second quarter.
Pete Miller, President and CEO of National Oilwell, stated "Our non-capital business continues to improve steadily, and this contributed to our best quarterly results since 2001. While backlog and capital equipment orders can be affected by our customers' various timing issues, we continue to see strong global interest and the beginnings of the need for new capital equipment in North America."
About National Oilwell
National Oilwell (NYSE:NOI) 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.
Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by National Oilwell with the Securities and Exchange Commission, including the Annual Report on Form 10-K, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.
Source: National Oilwell Varco