Cameron 1st-Quarter Net Rose 11%; Cuts Year View

   By Melodie Warner 
 

Cameron International Corp.'s (CAM) first-quarter earnings rose 11% as all segments posted improved revenue, although margins shrank.

The oil-and-gas equipment maker also lowered its full-year earnings estimate to $3.50 to $3.70 a share from its January forecast of $3.70 to $3.95 a share. The company also forecast current-quarter earnings of 75 cents to 80 cents a share, while analysts surveyed by Thomson Reuters expect 90 cents.

Cameron's revenue has grown for more than two years as recovering oil-and-gas demand boosts its sales of rig equipment. But litigation, integration and other charges have weighed on its profit growth and margins.

Cameron reported a profit of $148.3 million, or 60 cents a share, up from $134 million, or 54 cents a share, a year earlier. Excluding joint venture formation costs, hedging activity, acquisition-integration costs and other items, adjusted earnings rose to 70 cents from 54 cents.

The company's January projection was per-share earnings of 70 cents to 75 cents, below consensus estimates at the time.

Revenue jumped 17% to $2.12 billion, missing the $2.17 billion estimate from analysts polled by Thomson Reuters.

Operating margin fell to 8.6% from 9.5%.

Revenue from the drilling and production business jumped 22% to $1.27 billion. The valves and measurement segment posted a 6.2% revenue increase. Process and compression-systems sales were up 21%.

Orders booked rose to $3.6 billion from $2.6 billion. Backlog climbed 47% to $10 billion, its highest historical level.

Shares closed Wednesday at $62.47 and were inactive premarket. The stock has climbed 11% since the beginning of the year.

Write to Melodie Warner at [e-mail]

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