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Cameron International: Vice President, Investor Relations

The following excerpt is from the company's SEC filing.

(713) 513-3344


$1.18 fully diluted earnings per share excluding discontinued operations and other costs

Strong execution and margin performance in Subsea and Drilling Segments

Systemic cost reduction program continues to enhance margins

HOUSTON, October 22, 2015 -- Cameron (NYSE: CAM) today reported fully diluted earnings per share, excluding discontinued operations and other costs, of $1.18 for the third quarter of 2015, compared to $1.17 for the same period of 2014.

Other costs in the third quarter of 2015 amounted to $4 4 million, or $0.20 per share, as detailed in an accompanying table.

On a GAAP basis, the Company’s fully diluted earnings per share for the third quarter and first nine months of 2015 were $0.97 and $1.96, respectively, as compared to $1.11 and $2.68 for the same periods of 2014.

President and Chief Executive Officer Scott Rowe, said, “Despite the severity of the global downturn in energy markets, which has been especially pronounced in North America, Cameron reported very strong operating results in the third quarter of 2015. These results validate the journey we began in 2014 to reduce the company’s fundamental cost structure and improve execution across our four segments.”

Rowe said, “The Company’s earnings for the third quarter of 2015 were comparable to those of the third quarter of 2014, as a near-tripling of operating income in the Subsea Segment, a 20% reduction in consolidated SG&A and a lower tax rate were offset by reduced operating income in the Company’s other three business segments. Revenues were down in all four segments relative to the year-ago quarter, reflecting weaker demand in the company’s served markets.”

Segment Performance

Subsea - the segment generated significant increases in operating income and operating income margin relative to the year-ago quarter, driven primarily by strong execution which generated project cost reductions during the quarter.

Surface - ongoing weakness in demand and pricing in North America contributed to a decline in operating income and operating income margin as compared to the year-ago quarter.

Drilling - strong execution enabled accelerated delivery of backlog, which contributed to an increase in operating income margin relative to the year-ago quarter. Margin improvement was also supported by cost reduction activities.

Valves & Measurement - lower volumes and pricing pressures contributed to a decline in operating income and operating income margin, relative to the year-ago quarter, partially offset by cost reduction.


Rowe said, “Although our operational improvements partially mitigated the third-quarter impact of the cyclical downturn, we have seen no easing of market pressures and - as a result - we expect operating income margins to decline sequentially in the fourth quarter in each of our four segments. In the face of market headwinds, we will maintain our relentless focus on the things we can control: execution, customer relationships, cost reduction and technology.”

Cash Flow from Operations

The company generated cash from operations of $376 million during the third quarter of 2015 and ended the quarter with cash, cash equivalents and short-term investments totaling $1.9 billion.

Agreement to be Acquired by Schlumberger Limited

On August 26, 2015, Schlumberger Limited (NYSE: SLB) and Cameron jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies. The transaction is subject to Cameron shareholders' approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur in the first quarter of 2016.

In light of the pending transaction with Schlumberger, Cameron is discontinuing its quarterly conference calls for the investment community.

Cameron (NYSE: CAM) is a leading provider of flow equipment products, systems and services to worldwide oil and gas industries.

In addition to the historical data contained herein, this document includes forward-looking statements regarding operating income margins for the company’s business segments, made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

The Company's actual results may differ materially from those...