Cameron Posts In-Line Results - Analyst Blog

Cameron International Corp. (CAM) posted in-line first quarter results. Earnings per share, excluding severance-related costs and charges associated with the acquisition of NATCO Group, came in at 51 cents.

However, on a year-over-year basis, Cameron’s adjusted earnings per share fell 13.6% (from 59 cents to 51 cents), reflecting depressed margins across several product lines due to orders booked at lower prices in the last year.

Gross profit during the quarter came at $432.6 million, up 4.7% year over year, as revenues rose 7.1% to $1.35 billion. However, gross profit margin decreased approximately 80 basis points year over year to 32.1%.

Revenues for the DPS segment totaled $943.5 million, up 17.2% from the year-ago quarter, mainly driven by increased subsea project deliveries. The DPS segment EBITDA rose nearly 3% year over year to $189.5 million.

Quarterly revenues in the Valves & Measurement (V&M) segment totaled $299 million, down 5.4% year over year, while segment EBITDA witnessed a 13.3% year over year fall to $59.1 million.

Revenues in the Compression Systems (CS) segment totaled $104.2 million, down 23.2% year over year. The segment’s EBITDA was $17.8 million, down 13.2 year over year.

At the end of the quarter, total backlog stood at $4.98 billion, down 5.5% from the year-earlier level, reflecting overall market weakness and lack of sizable project awards. The composition of current order booking is: DPS – 81%, V&M – 13% and CS – 6%. Backlog in the Drilling and Subsea businesses declined as project deliveries continued.

During the quarter, Cameron spent $29.8 million on capital expenditures. As of March 31, 2010, cash and cash equivalents stood at $1.6 billion, while total long-term debt stood at $1.26 billion (debt-to-capitalization ratio of 24.2%).

Management expects 2010 full-year earnings in the range of $2.20 – $2.30 per share, while that for the second quarter of 2010 is projected to be between 52 cents and 55 cents.