Breaking News

World Health Organization Declares Nigeria Ebola-Free
Tweet TWEET

Cameron Announces Fourth Quarter 2012 Earnings

                Cameron Announces Fourth Quarter 2012 Earnings

PR Newswire

HOUSTON, Jan. 31, 2013

HOUSTON, Jan. 31, 2013 /PRNewswire/ -- Cameron (NYSE: CAM) reported earnings
per share for the fourth quarter of 2012 of $0.95 excluding charges. This
compares to earnings per share for the fourth quarter of 2011 of $0.77
excluding charges. After-tax charges for the fourth quarter of 2012 were $0.07
per share. After-tax charges for the fourth quarter 2011 were $0.37 per share
primarily related to the Deepwater Horizon matter.

The Company reported GAAP net income of $218.3 million for the fourth quarter
of 2012, or $0.88 per diluted share. Earnings per diluted share increased 120
percent compared to the fourth quarter 2011 earnings of $0.40 per diluted
share. For the year the Company reported GAAP net income of $750.5 million, or
$3.02 per diluted share. Earnings per diluted share increased 44 percent
compared to full year 2011 earnings of $2.09 per diluted share.

Record revenues up sequentially for quarter and year; increase in every
segment

Revenues of $2.4 billion for the quarter were at a record level, up nearly 20
percent from $2.0 billion a year ago. Record revenues for the year of $8.5
billion exceeded 2011 revenues of $7.0 billion by over 22 percent. Revenues
were up sequentially for all three segments for both the quarter and the year.
Quarterly and annual income before income taxes were at record levels.
Quarterly income before income taxes was $273.4 million, up over 117 percent
from $125.9 million a year ago. For the year, 2012 income before income taxes
was $938.0 million up 44 percent from $651.1 million in 2011. Cameron Chairman
and Chief Executive Officer Jack B. Moore said, "Both quarter and annual
year-over-year revenue increases were due to double digit revenue gains in all
three of the Company's segments."

Record orders and backlog

Orders booked in the fourth quarter of 2012 totaled a record $3.4 billion, up
from $1.9 billion a year ago, representing an increase of about 80 percent.
Full-year orders totaled $10.9 billion, up over 39 percent from $7.8 billion
in 2011 and represented the highest order year in the Company's history.

Moore noted record quarterly orders in the Drilling and Surface Systems
businesses within the DPS segment and the V&M segment. These same business
segments also achieved record annual orders. Moore said, "The Drilling Systems
business saw unprecedented strength for the quarter, including 21 deepwater
BOP awards as well as its previously announced first full deepwater rig
package order. DPS accomplished this record level of orders without any large
subsea awards."

Cameron's backlog at the end of the fourth quarter was $8.6 billion, up from
the beginning of the year level of $6.0 billion. Moore noted that this is a
record backlog for the Company reflecting over 43 percent growth from a year
ago.

Record cash flow from operations while capital investments continue

Cameron's cash flow from operations totaled a record $544.7 million in the
fourth quarter. Moore said, "We were pleased with our working capital
management in the fourth quarter whichresulted in strong annual cash flow of
nearly $683.0 million."

"We spent $427.2 million in capital expenditures during the year," Moore said,
"with an emphasis on enhancing our aftermarket reach and capability and
meeting demands in unconventional drilling." Moore added that he expects
Cameron's capital spending to remain around the $500 million level during
2013, saying, "We see a mix of needs and opportunities for our businesses
during the year that continue to require a strong capital spending commitment.
The majority will be targeted at expanding our Drilling infrastructure and
other capacity needs."

2013 earnings expected to reach $3.70 to $3.95 per share

Moore said Cameron currently expects its 2013 earnings to be in the range of
$3.70 to $3.95 per diluted share, excluding charges. "Our 2013 earnings are
expected to be another record. Earnings for the year will ultimately be
influenced by the level of North American activity as well as our ability to
execute on our record backlog," Moore said. First quarter 2013 earnings,
excluding charges, are expected to reflect the typical seasonal decline from
the fourth quarter and should approximate $0.70 to $0.75 per diluted share.
"The timing of project deliveries will heavily influence our earnings for the
first quarter," Moore added.

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

Website: www.c-a-m.com

In addition to the historical data contained herein, this document includes
forward-looking statements regarding future earnings of the Company (including
first quarter and full year 2013 earnings per share estimates), as well as
expectations regarding working capital needs and capital expenditures, 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 described in forward-looking statements. Such statements are based on
current expectations of the Company's performance and are subject to a variety
of factors, some of which are not under the control of the Company, which can
affect the Company's results of operations, liquidity or financial condition.
Such factors may include overall demand for, and pricing of, the Company's
products, particularly as affected by North American activity; the size and
timing of orders; the Company's ability to successfully execute the large
subsea and drilling systems projects it has been awarded; the possibility of
cancellations of orders; the Company's ability to convert backlog into
revenues on a timely and profitable basis; the impact of acquisitions the
Company has made or may make; changes in the price of (and demand for) oil and
gas in both domestic and international markets; raw material costs and
availability; political and social issues affecting the countries in which the
Company does business; fluctuations in currency markets worldwide; and
variations in global economic activity. In particular, current and projected
oil and gas prices historically have generally directly affected customers'
spending levels and their related purchases of the Company's products and
services. Additionally, changes in oil and gas price expectations may impact
the Company's financial results due to changes it may make in its cost
structure, staffing or spending levels.

Because the information herein is based solely on data currently available, it
is subject to change as a result of changes in conditions over which the
Company has no control or influence, and should not therefore be viewed as
assurance regarding the Company's future performance. Additionally, the
Company is not obligated to make public indication of such changes unless
required under applicable disclosure rules and regulations.



Cameron
Unaudited Consolidated Condensed Results of Operations
($ and shares in millions except per share data)
                             Three Months Ended         Twelve Months Ended
                             December 31,               December 31,
                             2012         2011          2012       2011
Revenues:
 Drilling & Production    $ 1,393.7    $ 1,216.0    $ 4,871.3  $ 4,061.5
Systems.
 Valves & Measurement     556.7        462.2         2,142.2    1,663.0
 Process & Compression    475.4        352.5         1,488.6    1,234.5
Systems
 Total        2,425.8      2,030.7       8,502.1    6,959.0
revenues
Costs and Expenses:
Costs of sales (exclusive
of depreciation and          1,726.8      1,430.5       6,024.3    4,838.4
amortization shown
separately below)
 Selling and              318.6        277.7         1,161.2    1,001.5
administrative expenses
 Depreciation and         64.8         61.2          254.7      206.6
amortization
 Interest, net            20.5         21.2          90.4       84.0
 Other costs              21.7         114.2         33.5       177.4
 Total costs  2,152.4      1,904.8       7,564.1    6,307.9
and expenses
Income before income taxes   273.4        125.9         938.0      651.1
Income tax provision         (55.1)       (26.0)        (187.5)    (129.2)
Net income                   $   218.3  $    99.9  $        $   521.9
                                                        750.5
Earnings per common share:
 Basic                    $         $          $        $   
                             0.88         0.41         3.05      2.13
 Diluted                  $         $          $        $   
                             0.88         0.40         3.02      2.09
Shares used in computing
earnings per common share:
 Basic                    246.7        245.3         246.4      245.0
 Diluted                  248.4        247.4         248.1      249.2
EBITDA, excluding other
costs:
Drilling & Production        $   238.7  $   246.0   $        $   797.0
Systems                                                 862.2
Valves & Measurement         126.8        92.3          467.2      334.4
Process & Compression        77.5         38.0          184.0      153.9
Systems
Corporate and other^(1)      (62.6)       (53.8)        (196.8)    (166.2)
 Total                    $   380.4  $   322.5   $ 1,316.6  $ 1,119.1



^

        Corporate EBITDA amounts exclude $21.7 and $114.2 million of other
^(1)    costs for the three-month periods ended December 31, 2012 and 2011,
        respectively; and $33.5 and $177.4 million for the years ended
        December 31, 2012 and 2011, respectively.



Cameron
Consolidated Condensed Balance Sheets
($ millions)
                                    December 31, 2012      December 31, 2011
                                    (unaudited)
Assets:
Cash and cash equivalents           $     1,185.8     $       898.9
Short-term investments              517.0                  423.5
Receivables, net                    1,966.7                1,757.3
Inventories, net                    2,741.2                2,399.9
Other                               499.9                  349.0
 Total current assets            6,910.6                5,828.6
Plant and equipment, net            1,765.1                1,500.1
Goodwill                            1,923.9                1,615.3
Other assets                        558.6                  417.7
 Total Assets            $    11,158.2      $     9,361.7
Liabilities and Stockholders'
Equity:
Short-term debt                     $        29.2  $       
                                                           10.6
Accounts payable and accrued        3,045.7                2,669.7
liabilities
Accrued income taxes                94.1                   –
 Total current liabilities       3,169.0                2,680.3
Long-term debt                      2,047.0                1,574.2
Deferred income taxes               131.7                  184.5
Other long-term liabilities         244.4                  215.3
 Total liabilities           5,592.1                4,654.3
Commitments and contingencies       –                      –
Stockholders' equity:
Common stock, par value $.01 per
share, 400,000,000 shares

 authorized, 263,111,472 shares  2.6                    2.6
issued at December 31, 2012

 and 2011
Preferred stock, par value $.01
per share, 10,000,000 shares
                                    –                      –
 authorized, no shares issued
or outstanding
Capital in excess of par value      2,094.6                2,072.4
Retained earnings                   4,120.7                3,370.2
Accumulated other elements of       (30.0)                 (90.8)
comprehensive income (loss)
Less: Treasury stock at cost,
16,415,336 shares at
                                    (621.8)                (647.0)
 December 31, 2012 and
17,579,397 shares at December 31,
2011.
 Total stockholders' equity      5,566.1                4,707.4
 Total Liabilities and           $    11,158.2      $     9,361.7
Stockholders' Equity



Cameron
Unaudited Consolidated Condensed Statements of Cash Flows
($ millions)
                                   Three Months           Twelve Months

                                   Ended December 31,     Ended December 31,
                                   2012       2011        2012       2011
Cash flows from operating
activities:
 Net income                     $  218.3  $   99.9  $  750.5  $  521.9
 Adjustments to reconcile net
income to

 net cash provided by
operating activities:
 Depreciation           58.8       45.2        211.8      160.2
 Amortization           6.0        16.0        42.9       46.4
 Non-cash stock         13.4       10.0        44.7       36.7
compensation expense
Deferred income taxes and tax
benefit of employee stock
compensation plan                  (25.5)     (34.6)      (85.1)     (22.0)

 transactions
 Changes in assets and
liabilities, net of

 translation,
acquisitions and non-cash items:
  Receivables            (94.8)     (100.7)     (144.0)    (461.1)
 Inventories            70.5       34.3        (368.9)    (397.1)
 Accounts payable and   307.1      176.1       213.0      200.8
accrued liabilities
 Other assets and       (9.1)      82.8        18.0       122.7
liabilities, net
Net cash provided by operating     544.7      329.0       682.9      208.5
activities
Cash flows from investing
activities:
 Proceeds from sales and
maturities of short-term           256.8      15.2        1,031.7    15.2
investments
 Purchases of short-term        (409.8)    (438.0)     (1,125.4)  (438.0)
investments
 Capital expenditures           (146.9)    (159.6)     (427.2)    (388.1)
 Acquisitions, net of cash      (39.6)     (378.8)     (349.3)    (421.3)
acquired
 Proceeds from sales of plant   1.8        2.0         27.6       19.6
and equipment
 Net cash used for  (337.7)    (959.2)     (842.6)    (1,212.6)
investing activities
Cash flows from financing
activities:
 Short-term loan borrowings     (4.0)      (4.0)       (41.9)     45.7
(repayments), net
 Issuance of senior debt        –          –           499.3      747.8
 Debt issuance costs            –          –           (3.4)      (4.7)
 Redemption of convertible      –          –           –          (705.7)
debentures
 Purchase of equity call        –          –           –          (12.2)
options, net
 Purchase of treasury stock     (8.8)      (2.4)       (21.3)     (2.4)
Proceeds from stock option
exercises, net of tax payments     1.9        1.5         12.3       21.5
from stock compensation plan
transactions
Excess tax benefits from stock     1.6        3.7         11.1       9.0
compensation plan transactions
Principal payments on capital      (3.1)      (2.2)       (11.3)     (8.2)
leases
 Net cash provided by (used     (12.4)     (3.4)       444.8      90.8
for) financing activities
Effect of translation on cash      0.5        (4.0)       1.8        (20.3)
Increase (decrease) in cash and    195.1      (637.6)     286.9      (933.6)
cash equivalents
Cash and cash equivalents,         990.7      1,536.5     898.9      1,832.5
beginning of period
Cash and cash equivalents, end of  $ 1,185.8  $  898.9   $ 1,185.8  $  898.9
period



Cameron
Orders and Backlog
($ millions)
Orders
                        Three Months                 Twelve Months

                        Ended December 31,           Ended December 31,
                        2012          2011           2012          2011
Drilling & Production   $  2,544.5  $    933.4  $  7,326.8  $  4,343.4
Systems
Valves & Measurement    540.7         538.2          2,104.3       2,000.7
Process & Compression   358.0         443.2          1,455.6       1,483.5
Systems
 Total       $  3,443.2  $  1,914.8    $ 10,886.7   $  7,827.6



Backlog
                               December 31,        December 31,

                               2012                2011
Drilling & Production Systems  $     6,576.4  $  3,811.1
Valves & Measurement           1,051.0             1,144.9
Process & Compression Systems  969.8               1,013.1
 Total                      $     8,597.2  $  5,969.1



Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions)
                                   Three Months Ended December 31, 2012
                       Drilling &  Valves &      Process &
                       Production  Measurements  Compression  Corporate  Total
                       Systems                   Systems
Income (loss) before   $        $  116.5     $   67.9  $         $ 
income taxes           202.1                                 (113.1)    273.4
Depreciation &         36.6        10.3          9.6          8.3        64.8
amortization
Interest, net          –           –             –            20.5       20.5
Other costs            –           –             –            21.7       21.7
EBITDA, excluding      $        $  126.8     $   77.5  $        $ 
other costs            238.7                                 (62.6)     380.4



                                  Three Months Ended December 31, 2011
                      Drilling &  Valves &      Process &
                      Production  Measurements  Compression  Corporate   Total
                      Systems                   Systems
Income (loss) before  $  211.3   $  81.9      $  27.4     $          $ 
income taxes                                                 (194.7)     125.9
Depreciation &        34.7        10.4          10.6         5.5         61.2
amortization
Interest, net         –           –             –            21.2        21.2
Other costs           –           –             –            114.2       114.2
EBITDA, excluding     $  246.0   $  92.3      $  38.0     $  (53.8)  $ 
other costs                                                              322.5



Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions)
                               Twelve Months Ended December 31, 2012
                   Drilling &  Valves &       Process &
                   Production  Measurements   Compression  Corporate  Total
                   Systems                    Systems
Income (loss)      $                                    $         $  
before income      712.3      $  425.8      $  147.1    (347.2)    938.0
taxes
Depreciation &     149.9       41.4           36.9         26.5       254.7
amortization
Interest, net      –           –              –            90.4       90.4
Other costs        –           –              –            33.5       33.5
EBITDA, excluding  $        $  467.2      $  184.0    $         $
other costs        862.2                                  (196.8)    1,316.6





                                Twelve Months Ended December 31, 2011
                    Drilling &  Valves &       Process &
                    Production  Measurements   Compression  Corporate  Total
                    Systems                    Systems
Income (loss)                                               $         $ 
before income       $  685.6   $  294.1      $ 116.0      (444.6)    651.1
taxes
Depreciation &      111.4       40.3           37.9         17.0       206.6
amortization
Interest, net       –           –              –            84.0       84.0
Other costs         –           –              –            177.4      177.4
EBITDA, excluding   $  797.0   $  334.4      $  153.9    $         $ 
other costs                                                 (166.2)    1,119.1



Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions, except per share amounts)
                                          Three Months Ended December 31, 2012
                                          After Tax^(1)      Diluted EPS^(2)
Net income, as reported                   $   218.3        $      0.88
Adjustments:
 Impairment of intangibles             14.0
 International pension settlement      0.4
costs
 Acquisition integration costs         2.5
 Mark-to-market impact on currency
derivatives not designated as accounting  (1.9)
hedges
 Joint venture formation costs         2.2
 Severance, restructuring and other    0.1
costs
 Net income, excluding         $   235.6        $      0.95
charges

^

^(1) Individual adjustments assume a 20.2% effective tax rate
^(2) Based on 248.4 million diluted shares



                                          Three Months Ended December 31, 2011
                                          After Tax^(1)      Diluted EPS^(2)
Net income, as reported                   $    99.9       $    0.40
Adjustments:
 Costs associated with the Deepwater   85.4
Horizon matter and BOP litigation
 Mark-to-market impact on currency
derivatives not designated as          2.3
accounting hedges
 Severance, restructuring and other    2.8
costs
 Net income, excluding         $   190.4        $   0.77
charges



^(1) Individual adjustments assume a 20.7% effective tax rate
^(2) Based on 247.4 million diluted shares



Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions, except per share amounts)
                                                Year Ended December 31, 2012
                                                After Tax^(1)  Diluted EPS^(2)
Net income, as reported                         $   750.5    $    3.02
Adjustments:
 Impairment of intangibles                   14.0
 International pension settlement costs      5.3
 BOP litigation costs                        2.0
 Acquisition integration costs               10.6
 Mark-to-market impact on currency
derivatives not designated as  accounting    (12.6)
hedges
 Joint venture formation costs               2.2
 Severance, restructuring and other costs    5.3
 Net income, excluding charges       $   777.3    $    3.13

^^

^(1) Individual adjustments assume a 20.0% effective tax rate
^(2) Based on 248.1 million diluted shares



                                                Year Ended December 31, 2011
                                                After Tax^(1)  Diluted EPS^(2)
Net income, as reported                         $   521.9    $    2.09
Adjustments:
 Costs associated with the Deepwater         114.8
Horizon matter and BOP litigation
 Mark-to-market impact on currency
derivatives not designated as  accounting    7.5
hedges
 Cost associated with retiring the 2.5%      11.6
convertible debentures
 Severance, restructuring and other costs    8.3
 Net income, excluding charges       $   664.1    $   2.67

^

^(1) Individual adjustments assume a 19.8% effective tax rate
^(2) Based on 249.2 million diluted shares



SOURCE Cameron

Website: http://www.c-a-m.com
Contact: Jeff Altamari, Vice President, Investor Relations, +1-713-513-3344
 
Press spacebar to pause and continue. Press esc to stop.