Cameron Announces Third Quarter Earnings

                   Cameron Announces Third Quarter Earnings

PR Newswire

HOUSTON, Oct. 24, 2013

HOUSTON, Oct. 24, 2013 /PRNewswire/ --Cameron (NYSE: CAM) reported earnings
per share for the third quarter of 2013 of $0.81, excluding charges. After-tax
charges for the third quarter of 2013 were $8.6 million, primarily related to
the integration of OneSubsea and certain other acquisitions.

The Company reported GAAP net income of $189.6 million for the quarter, or
$0.78 per diluted share. This compares to GAAP net income of $223.6 million
for the third quarter of 2012, or $0.90 per diluted share.

Year-over-year revenues increase

Revenues of $2.5 billion for the quarter were a record, up nearly 13 percent
from $2.2 billion a year ago. Cameron Chairman and Chief Executive Officer
Jack B. Moore said that the year-over-year revenue increases were due to
double digit revenue gains in Drilling & Productions Systems (DPS). "Record
revenues were established this quarter in each of our DPS businesses,
OneSubsea, surface and drilling systems," Moore said.

Year-over-year orders increase over 32 percent; backlog at record level

Total orders were $3.0 billion for the quarter, up from $2.3 billion in the
third quarter of 2012, for an increase of over 32 percent. Year-to-date subsea
bookings of $2.8 billion have eclipsed the previous record of $2.7 billion
established for full-year 2008.

The quarter included the delivery of the first in a series of high
specification, harsh environment jack-up drilling rigs to Prospector Offshore
Drilling S.A. This represents the seventh jack-up drilling package delivered
by the Company's Sense operations.

Cameron's backlog at the end of the third quarter was $11.2 billion, up from
the beginning of the year level of $8.6 billion and up from $7.6 billion a
year ago. This is a record backlog for the Company and represents almost 47
percent growth from prior year. Moore stated, "The Company is committed to
continue to invest in the infrastructure required to meet our customers'
needs."

OneSubsea receives subsea processing order

Subsequent to quarter end, OneSubsea received a letter of award for one of the
largest dual pumping stations in its history from Total for its Moho Phase 1
bis. subsea project in the Congo,further demonstrating OneSubsea's clear
leadership in the subsea processing space. OneSubsea has sold eighty-five
subsea pumping units over the past seventeen years. Moore noted that OneSubsea
will make significant investments in R&D in 2014. "This will further advance a
number of platforms like subsea processing that will allow us to achieve
OneSubsea's stated goal of maximizing reservoir recovery for its customers",
Moore said.

Capital investment and share repurchases continue 

Year-to-date cash flow from operations was $206.5 million compared to $138.2
for the comparable period in 2012. Capital spending will approximate $500
million in 2013, reflecting multiple opportunities for deployment of capital,
including enhanced exposure to North American resource plays and expansion of
facilities and investment in the drilling and aftermarket services businesses.

The Company acquired 7.7 million of its shares during the third quarter. Total
cash returned to shareholders through share repurchases totaled $558 million
so far in 2013. Further, the Company's board of directors approved an
additional $1.0 billion share repurchase authorization at its October meeting.

Fourth quarter earnings guidance

The Company's fourth quarter earnings are expected to be in the range of $0.95
to $1.00 per share, excluding charges.

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 deliveries, cash flow from
operations, earnings and earnings per share estimates of the Company,
including those of OneSubsea, for the fourth quarter of 2013. Also included
are expectations regarding full year 2013 capital expenditures for the Company
and 2014 estimated R&D spending by OneSubsea which have been 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      Nine Months Ended

                                  September 30,           September 30,
                                  2013        2012        2013       2012
Revenues:
Drilling & Production Systems     $         $         $        $  
                                  1,636.8     1,279.7     4,344.2    3,477.6
Valves & Measurement              502.5       536.0       1,558.3    1,585.5
Process & Compression Systems     356.5       402.6       998.4      1,013.2
Total revenues                    2,495.8     2,218.3     6,900.9    6,076.3
Costs and Expenses:
Cost of sales (exclusive of
depreciation and amortization     1,780.7     1,568.2     4,899.8    4,297.5
shown separately below)
Selling and administrative        346.6       285.0       986.2      842.6
expenses
Depreciation and amortization     83.4        66.8        223.5      189.9
Interest, net                     23.2        25.1        74.4       69.8
Other costs                       13.9        3.4         80.2       11.8
Total costs and expenses          2,247.8     1,948.5     6,264.1    5,411.6
Income before income taxes        248.0       269.8       636.8      664.7
Income tax provision              (55.6)      (46.2)      (155.6)    (132.5)
Net income                        192.4       223.6       481.2      532.2
Net income attributable to        2.8         –           2.8        –
noncontrolling interests
Net income attributable to        $  189.6   $  223.6   $ 478.4   $ 532.2
Cameron
Earnings per share attributable
to Cameron stockholders:
Basic                             $   0.78  $   0.91  $  1.95  $  2.16
Diluted                           $   0.78  $   0.90  $  1.94  $  2.15
Shares used in computing earnings
per share attributable to Cameron
stockholders:
Basic                             242.7       246.4       245.6      246.3
Diluted                           244.2       248.1       247.1      248.0
EBITDA, excluding other costs:
Drilling & Production Systems     $  273.6   $  239.9   $ 711.2   $ 623.4
Valves & Measurement              107.8       116.0       349.7      340.4
Process & Compression Systems     43.1        50.6        105.9      106.5
Corporate and other^(1)           (56.0)      (41.4)      (151.9)    (134.1)
Total                             $  368.5   $  365.1   $        $ 936.2
                                                          1,014.9

     Corporate EBITDA amounts exclude $13.9 million and $80.2 million of other
^(1) costs for the three- and nine-month periods ended September 30, 2013; and
     $3.4 million and $11.8 million for the three- and nine-month periods
     ended September 30, 2012.



Cameron

Consolidated Condensed Balance Sheets

($ millions)
                                        September 30,     December 31,

                                        2013              2012
                                        (unaudited)
Assets:
Cash and cash equivalents               $    1,257.0   $     1,185.8
Short-term investments                  498.2             517.0
Receivables, net                        2,467.7           1,966.7
Inventories, net                        3,216.3           2,741.2
Other                                   434.9             499.9
Total current assets                    7,874.1           6,910.6
Plant and equipment, net                1,926.9           1,765.1
Goodwill                                2,939.9           1,923.9
Other assets                            1,123.3           558.6
Total Assets                            $   13,864.2    $    11,158.2
Liabilities and Stockholders' Equity:
Short-term debt                         $     292.5  $        29.2
Accounts payable and accrued            3,533.6           3,045.7
liabilities
Accrued income taxes                    88.1              94.1
Total current liabilities               3,914.2           3,169.0
Long-term debt                          1,820.5           2,047.0
Deferred income taxes                   320.9             131.7
Other long-term liabilities             222.9             244.4
Total liabilities                       6,278.5           5,592.1
Stockholders' Equity:
Common stock, par value $.01 per share,
400,000,000 shares
                                        2.6               2.6
authorized, 263,111,472 shares issued
at September 30, 2013 and December 31,
2012
Capital in excess of par value          3,170.5           2,094.6
Retained earnings                       4,599.1           4,120.7
Accumulated other elements of           (92.2)            (30.0)
comprehensive income (loss)
Less: Treasury stock, 24,621,527
shares at September 30, 2013
                                        (1,145.1)         (621.8)
(16,415,336 shares at December 31,
2012)
Total Cameron stockholders' equity   6,534.9           5,566.1
Noncontrolling interests                1,050.8           –
 Total equity                    7,585.7           5,566.1
Total Liabilities and Stockholders'     $   13,864.2    $    11,158.2
Equity



Cameron

Unaudited Consolidated Condensed Statements of Cash Flows

($ millions)
                                Three Months Ended    Nine Months Ended

                                September 30,         September 30,
                                2013       2012       2013         2012
Cash flows from operating
activities:
 Net income                  $  192.4  $  223.6  $   481.2  $   532.2
Adjustments to reconcile net
income to net cash provided by
operating activities:
 Depreciation            61.7       53.6       177.1        153.0
 Amortization            21.7       13.2       46.4         36.9
 Non-cash stock          13.4       9.7        40.7         31.3
compensation expense
Deferred income taxes and tax
benefit of employee stock       18.8       (91.2)     30.3         (59.6)
compensation plan transactions
Changes in assets and
liabilities, net of
translation, acquisitions and
non-cash items:
 Receivables             (162.0)    (65.9)     (232.9)      (49.1)
 Inventories             (109.8)    (127.3)    (449.9)      (439.5)
 Accounts payable and    211.4      74.2       218.9        (94.1)
accrued liabilities
 Other assets and        (48.0)     88.6       (105.3)      27.1
liabilities, net
 Net cash provided
by operating                    199.6      178.5      206.5        138.2
activities
Cash flows from investing
activities:
 Proceeds from sales and
maturities of short-term        259.3      262.7      887.6        775.0
investments
 Purchases of short-term     (447.2)    (207.3)    (868.6)      (715.6)
investments
 Capital expenditures        (123.3)    (98.7)     (305.9)      (280.4)
 Dispositions
(acquisitions), net of cash     (19.8)     –          (10.8)       (309.6)
acquired
Proceeds received and cash
acquired from formation of      –          –          603.0        –
OneSubsea
 Proceeds from sales of      3.1        7.5        7.5          25.8
plant and equipment
 Net cash provided
by (used for) investing         (327.9)    (35.8)     312.8        (504.8)
activities
Cash flows from financing
activities:
 Short-term loan borrowings  32.0       6.6        40.6         (37.9)
(repayments), net
Issuance of senior debt         –          –          –            499.3
Debt issuance costs             –          –          –            (3.4)
 Purchase of treasury stock  (433.2)    (5.0)      (557.9)      (12.5)
Contributions from              62.2       –          62.2         –
noncontrolling interest owners
Purchases of noncontrolling     (7.2)      –          (7.2)        –
ownership interests
 Proceeds from stock option
exercises, net of tax payments  0.9        8.3        30.0         10.4
from stock compensation plan
transactions
 Excess tax benefits from
employee stock
                                0.8        4.1        8.9          9.3
 compensation plan
transactions
 Principal payments on       (2.9)      (2.8)      (13.0)       (8.1)
capital leases
 Net cash provided by
(used for) financing            (347.4)    11.2       (436.4)      457.1

 activities
Effect of translation on cash   14.6       7.8        (11.7)       1.3
Increase (decrease) in cash     (461.1)    161.7      71.2         91.8
and cash equivalents
Cash and cash equivalents,      1,718.1    829.0      1,185.8      898.9
beginning of period
Cash and cash equivalents, end  $        $  990.7  $ 1,257.0   $   990.7
of period                       1,257.0



Cameron

Orders and Backlog

($ millions)
Orders
                         Three Months Ended        Nine Months Ended

                         September 30,             September 30,
                         2013         2012         2013          2012
Drilling & Production    $  2,205.1  $  1,475.6  $  6,450.8  $   4,782.2
Systems
Valves & Measurement     497.3        485.8        1,559.6       1,563.6
Process & Compression    343.2        338.7        999.6         1,097.7
Systems
Total                    $  3,045.6  $  2,300.1  $  9,010.0  $   7,443.5



Backlog
                           September 30,    December 31,       September 30,

                           2013             2012               2012
Drilling & Production      $    9,161.5  $             $    5,423.9
Systems                                     6,576.4
Valves & Measurement       1,057.6          1,051.0            1,083.8
Process & Compression      940.4            969.8              1,090.0
Systems
Total                      $   11,159.5   $             $    7,597.7
                                            8,597.2



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)
                Three Months Ended September 30, 2013
                Drilling &  Valves &        Process & 
                Production  Measurement    Compression      Corporate  Total
                Systems                    Systems
Income (loss)
before income  $        $        $    34.2    $        $   
                216.2      98.1                            (100.5)   248.0
 taxes
Depreciation &  57.4        9.7            8.9              7.4        83.4
amortization
Interest, net   −           −              −                23.2       23.2
Other costs     −           −              −                13.9       13.9
EBITDA,         $        $                          $       $   
excluding       273.6      107.8          $    43.1    (56.0)    368.5
other costs



                      Three Months Ended September 30, 2012
                      Drilling &  Valves &     Process & 
                      Production  Measurement  Compression    Corporate  Total
                      Systems                  Systems
Income (loss)                                                            $  
before income        $        $         $    41.7  $        
                      198.8      105.6                      (76.3)    269.8
 taxes
Depreciation &        41.1        10.4         8.9            6.4        66.8
amortization
Interest, net         –           –            –              25.1       25.1
Other costs           –           –            –              3.4        3.4
EBITDA, excluding     $        $                        $       $  
other costs           239.9      116.0       $    50.6  (41.4)     
                                                                         365.1



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)
              Nine Months Ended September 30, 2013
               Drilling &      Valves &     Process &
              ProductionSystems  Measurement  Compression  Corporate  Total
                                               Systems
Income
(loss)
before       $   566.3        $        $        $        $   
income                            320.2        79.4        (329.1)   636.8

 taxes
Depreciation
&             144.9               29.5         26.5         22.6       223.5
amortization
Interest,     –                   –            –            74.4       74.4
net
Other costs   –                   –            –            80.2       80.2
EBITDA,                           $        $         $        $  
excluding     $   711.2        349.7        105.9       (151.9)   1,014.9
other costs



                        Nine Months Ended September 30, 2012
                        Drilling &  Valves &     Process & 
                        Production  Measurement  Compression  Corporate  Total
                        Systems                  Systems
Income (loss) before                                                    $  
income                  $        $        $        $         
                        510.2      309.3       79.2        (234.0)    664.7
 taxes
Depreciation &          113.2       31.1         27.3         18.3       189.9
amortization
Interest, net           –           –            –            69.8       69.8
Other costs             –           –            –            11.8       11.8
EBITDA, excluding       $        $        $         $        $  
other costs             623.4      340.4       106.5       (134.1)     
                                                                         936.2



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions, except per share amounts)
                                         Three Months Ended September 30, 2013
                                         After Tax            Diluted EPS^(3)
Net income attributable to Cameron, as   $     189.6     $     0.78
reported
Adjustments:
OneSubsea integration costs^(1)          3.1
 Acquisition integration costs^(2)    2.5
 Litigation, restructuring and other  1.9
costs^(2)
Mark-to-market impact on currency
derivatives not designated as accounting 1.1
hedges^(2)
 Adjusted EPS attributable to     $     198.2     $     0.81
Cameron stockholders
^(1) Cameron's share of OneSubsea integration costs, net of tax at a rate of
25%
^(2) Individual adjustments assume a 22.4% effective tax rate
^(3) Based on 244.2 million diluted shares



                                         Three Months Ended September 30, 2012
                                         After Tax^(1)       Diluted EPS^(2)
Net income attributable to Cameron, as   $     223.6    $       
reported                                                     0.90
Adjustments:
Acquisition integration costs            4.4
Mark-to-market impact on currency
derivatives not designated as accounting (6.3)
hedges
Litigation, restructuring and other      4.7
costs
 Adjusted EPS attributable to     $     226.4    $       
Cameron stockholders                                         0.91
^(1) Individual adjustments assume a 17.1% effective tax rate
^(2) Based on 248.1 million diluted shares



SOURCE Cameron

Website: http://www.c-a-m.com
Contact: Jeff Altamari, Vice President, Investor Relations, (713) 513-3344
 
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