Cameron Announces Fourth Quarter Earnings

                  Cameron Announces Fourth Quarter Earnings

- Reports fourth quarter earnings per share of $1.00, excluding charges

- Record revenues, orders and backlog in 2013

- Repurchases 27 million shares in 2013

- Announces sale of Reciprocating Compression business and intent to divest
Centrifugal Compression

- Reiterates key priorities

PR Newswire

HOUSTON, Jan. 30, 2014

HOUSTON, Jan. 30, 2014 /PRNewswire/ -- Cameron (NYSE: CAM) reported earnings
per share for the fourth quarter of 2013 of $1.00, excluding charges. This
compares to earnings per share for the fourth quarter of 2012 of $0.95,
excluding charges. After-tax charges for the fourth quarter of 2013 were $0.05
per share, primarily related to integration and restructuring costs. After-tax
charges for the fourth quarter 2012 were $0.07 per share.

The Company reported GAAP net income of $243.1 million for the fourth quarter
of 2013, or $0.95 per diluted share. This represents an increase of 11
percent from $218.3 million, or $0.88 per diluted share in GAAP net income for
the fourth quarter of 2012.

For the full year 2013, the Company reported diluted earnings per share of
$3.30 excluding charges and the tax consequences of the formation of
OneSubsea. This compares to diluted earnings per share, excluding charges, of
$3.13 in 2012.

For the full year 2013, the Company reported GAAP net income of $724.2
million, or $2.87 per diluted share, compared to GAAP net income of $750.5
million, or $3.02 per diluted share in 2012.

Chairman, President and CEO Jack Moore Reiterates Strategic Priorities

Jack Moore, Chairman, President and Chief Executive Officer of Cameron noted,
"In 2013, we made significant progress against our plan to leverage the
record-breaking sales and order momentum in our core markets, expand our
product and service offerings in strategic growth areas, optimize our
operations and drive increasing shareholder value. We achieved a number of key
strategic milestones including the recently announced sale of our
Reciprocating Compression Division and intention to explore alternatives for
our Centrifugal Compression Division. We continue to address our capacity and
cost challenges in Drilling Systems, which is attributable to record backlog
levels. Despite the operational headwind in our Drilling business, we believe
that our fundamental growth drivers remain intact. In addition, we added a
number of industry experts to our leadership team in 2013, strengthening our
operational focus that remains dedicated to execution and the disciplined
management of our cost structure. Furthermore, we executed a record amount of
share repurchases."

Moore further commented, "Going forward, we will focus on improving our return
on invested capital by strengthening margins and maintaining capital
discipline. We will make prudent investments in technology, such as with
OneSubsea, in order to provide transformational solutions to our customers. We
remain committed to invest in maximizing the potential of our core businesses
and achieving strong aftermarket growth which will allow us to deliver
additional value for our shareholders."

Record Revenues Up Sequentially and Year-over-Year

Cameron generated record revenues of $2.9 billion for the quarter, up 21
percent from $2.4 billion a year ago and 18 percent from $2.5 billion in the
third quarter of 2013. The Company experienced record revenues in its
Drilling, Surface Systems and OneSubsea businesses.

Record revenues for the year of $9.8 billion exceeded 2012 revenues of $8.5
billion by 16%.

In addition to record revenue performance, the Company saw sequential margin
expansion in all of its businesses during the fourth quarter, other than the
drilling business. Management remains committed to expanding its margins
during 2014.

Strong Fourth Quarter Orders; Record Orders and Backlog for the Year

Orders booked in the fourth quarter of 2013 totaled $3.3 billion. Drilling
Systems saw its second highest order quarter in history as customer demand for
drilling equipment and aftermarket services remained strong. Surface Systems
had a record quarter in North America, following two earlier record quarters
in North America in 2013. The Process business in PCS had a record orders
quarter driven by a $250 million CO2 separation order in Malaysia.

For the year, the Company saw record orders of $12.4 billion, up over 13
percent from 2012. The Drilling and Production Systems group experienced a
record order year, up 18 percent from 2012, driven by record orders in Surface
Systems and OneSubsea.

Company backlog ended at a record $11.5 billion up 34 percent from 2012 and up
93 percent from the end of 2011.

Strong Cash Flow from Operations Support Disciplined Capital Investments

Cameron's cash flow from operations totaled $632 million in the fourth quarter
and $838 million for the year.

Cameron recorded $520 million in capital expenditures during the year, focused
on expanding its Drilling Systems capacity needs, additions to the Surface
Systems infrastructure and its overall aftermarket growth. The Company expects
2014 capital expenditures to be between $425 and $450 million.

Repurchases Shares at Record Levels

The Company repurchased a record 27 million shares in 2013 at a cost of $1.5
billion, resulting in an ending diluted share count of 223 million. Cameron
increased share authorizations by $1.9 billion in 2013 and an authorization of
$843 million remained at the end of 2013. In addition, the Company issued $750
million of unsecured senior notes in the fourth quarter to help fund the share
repurchase. The Company plans to continue to be an aggressive repurchaser of
its stock when market conditions favor this strategy.

Announces Sale of Reciprocating Compression Business to GE and Intention to
Explore Strategic Alternatives for the Remainder of Compression Systems
Business

On January 20, 2014, the Company announced an agreement to sell its
Reciprocating Compression Division to GE for approximately $550 million
subject to closing adjustments. The Company expects to complete the sale in
the third quarter of 2014. Cameron also announced its intention to evaluate
strategic alternatives for its Centrifugal Compression business, as part of
its ongoing effort to optimize the Company's asset base with a focus on its
core markets. Management expects to apply net proceeds from the sale of the
Reciprocating Compression Division, estimated at $400 million net of tax, to
the share repurchase program under the current authorization.

2014 Earnings Expected to Reach $3.60 to $4.00 Per Share

Beginning in the first quarter of 2014, the Company's Reciprocating
Compression business will be reported as discontinued operations. With this
exclusion noted, Cameron currently expects its 2014 earnings from continuing
operations to be in the range of $3.60 to $4.00 per diluted share, excluding
charges. First quarter 2014 earnings from continuing operations, excluding
charges and Reciprocating Compression, are expected to reflect the typical
seasonal decline from the fourth quarter and are forecasted to be
approximately $0.70 to $0.75 per diluted share.

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, margins, earnings and earnings per share estimates of the Company,
including those of OneSubsea, for the first quarter and full year 2014. Also
included are expectations regarding full year 2014 capital expenditures for
the Company 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        Twelve Months Ended
                                December 31,              December 31,
                                2013         2012         2013         2012
Revenues:
 Drilling & Production       $  1,943.3  $  1,393.7  $  6,287.5  $ 
Systems                                                                4,871.3
 Valves & Measurement        527.5        556.7        2,085.7      2,142.2
 Process & Compression       466.7        475.4        1,465.2      1,488.6
Systems
 Total revenues  2,937.5      2,425.8      9,838.4      8,502.1
Costs and Expenses:
Costs of sales (exclusive of
depreciation and amortization   2,116.1      1,726.8      7,015.9      6,024.3
shown separately below)
 Selling and administrative  376.5        318.6        1,362.6      1,161.2
expenses
 Depreciation and            91.0         64.8         314.5        254.7
amortization
 Interest, net               25.8         20.5         100.2        90.4
 Other costs                 12.4         21.7         92.7         33.5
 Total costs     2,621.8      2,152.4      8,885.9      7,564.1
and expenses
Income before income taxes      315.7        273.4        952.5        938.0
Income tax provision            (72.6)       (55.1)       (228.3)      (187.5)
Net income                      243.1        218.3        724.2        750.5
Net income attributable to      22.2         –            25.0         –
noncontrolling interests
Net income attributable to      $          $          $          $  
Cameron                         220.9       218.3       699.2       750.5
Earnings per share
attributable to Cameron
stockholders:
 Basic                       $         $         $         $   
                                0.96        0.88        2.89         3.05
 Diluted                     $         $         $         $   
                                0.95        0.88        2.87         3.02
Shares used in computing
earnings per share
attributable to Cameron
stockholders:
 Basic                       231.1        246.7        242.0        246.4
 Diluted                     232.6        248.4        243.5        248.1
EBITDA, excluding other costs:
Drilling & Production Systems   $          $          $  1,029.8  $  
                                318.7       238.7                    862.2
Valves & Measurement            114.1        126.8        463.8        467.2
Process & Compression Systems   73.0         77.5         178.9        184.0
Corporate and other^(1)         (60.9)       (62.6)       (212.6)      (196.8)
 Total                       $          $          $  1,459.9  $ 
                                444.9       380.4                    1,316.6

     Corporate EBITDA amounts exclude $12.4 and $21.7 million of other costs
^(1) for the three-month periods ended December 31, 2013 and 2012,
     respectively; and $92.7 and $33.5 million for the years ended December
     31, 2013 and 2012, respectively.





Cameron

Consolidated Condensed Balance Sheets

($ millions)
                                                                                                                      December     December
                                                                                                                      31, 2013     31, 2012
                                                                                                                      (unaudited)
Assets:
                                                                                                                      $       $    
Cash and cash equivalents                                                                                             1,812.9     
                                                                                                                                   1,185.8
Short-term investments                                                                                                41.0         517.0
Receivables, net                                                                                                      2,719.1      1,966.7
Inventories, net                                                                                                      3,132.4      2,741.2
Other                                                                                                                 463.2        499.9
 Total current assets                                                                                              8,168.6      6,910.6
Plant and equipment, net                                                                                              2,036.9      1,765.1
Goodwill  2,924.8      1,923.9
Intangibles, net                                                                                                      903.7        335.8
Other assets                                                                                                          214.5        222.8
 Total Assets                                                                                              $        $    
                                                                                                                      14,248.5    11,158.2
Liabilities and Stockholders' Equity:
                                                                                                                      $       $    
Short-term debt                                                                                                         297.0       
                                                                                                                                   29.2
Accounts payable and accrued liabilities                                                                              3,883.4      3,045.7
Accrued income taxes                                                                                                  80.1         94.1
 Total current liabilities                                                                                         4,260.5      3,169.0
Long-term debt                                                                                                        2,562.8      2,047.0
Deferred income taxes                                                                                                 276.8        131.7
Other long-term liabilities                                                                                           233.0        244.4
 Total liabilities                                                                                             7,333.1      5,592.1
Commitments and contingencies                                                                                         –            –
Stockholders' equity:
Common stock, par value $.01 per share, 400,000,000 sharesauthorized, 263,111,472 shares issued at December 31,      2.6          2.6
2013and 2012
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding              –            –
 Capital in excess of par value                                                                                    3,206.9      2,094.6
 Retained earnings                                                                                                 4,819.9      4,120.7
 Accumulated other elements of comprehensive income (loss)                                                         (79.5)       (30.0)
Less: Treasury stock at cost, 41,683,164 shares at December 31, 2013 and 16,415,336 shares at December 31, 2012      (2,098.0)    (621.8)
 Total Cameron stockholders' equity                                                                        5,851.9      5,566.1
 Noncontrolling interests                                                                                          1,063.5      –
  Total equity                                                                                              6,915.4      5,566.1
  Total Liabilities and Stockholders' Equity                                                                    $        $    
                                                                                                                      14,248.5    11,158.2

Cameron

Unaudited Consolidated Condensed Statements of Cash Flows

($ millions)
                            Three Months              Twelve Months

                            Ended December 31,        Ended December 31,
                            2013         2012         2013         2012
Cash flows from operating
activities:
 Net income              $   243.1  $          $   724.2  $   750.5
                                         218.3
 Adjustments to
reconcile net income to

 net cash
provided by operating
activities:
 Depreciation    68.7         58.8         245.7        211.8
 Amortization    22.3         6.0          68.8         42.9
 Non-cash stock  13.1         13.4         53.8         44.7
compensation expense
Deferred income taxes and
tax benefit of employee     (19.1)       (25.5)       11.3         (85.1)
stock compensation plan
transactions
 Changes in assets and
liabilities, net of

 translation,
acquisitions and non-cash
items:
 Receivables     (236.8)      (94.8)       (469.7)      (144.0)
 Inventories     82.3         70.5         (367.6)      (368.9)
 Accounts
payable and accrued         337.4        307.1        556.3        213.0
liabilities
 Other assets    120.5        (9.1)        15.0         18.0
and liabilities, net
 Net cash provided by     631.5        544.7        837.8        682.9
operating activities
Cash flows from investing
activities:
 Proceeds from sales
and maturities of           671.3        256.8        1,558.9      1,031.7
short-term investments
 Purchases of            (213.7)      (409.8)      (1,082.3)    (1,125.4)
short-term investments
 Capital expenditures    (214.1)      (146.9)      (520.0)      (427.2)
 Dispositions
(acquisitions), net of      –            (39.6)       (10.7)       (349.3)
cash acquired
Proceeds received and cash
acquired from formation of  (80.4)       –            522.6        –
OneSubsea, net of taxes
paid
 Proceeds from sales of  5.8          1.8          13.4         27.6
plant and equipment
  Net cash provided
by (used for) investing     168.9        (337.7)      481.9        (842.6)
activities
Cash flows from financing
activities:
 Short-term loan
borrowings (repayments),    5.8          (4.0)        46.4         (41.9)
net
 Issuance of senior      746.8        –            746.8        499.3
debt
 Debt issuance costs     (6.1)        –            (6.1)        (3.4)
 Purchase of treasury    (973.7)      (8.8)        (1,531.6)    (21.3)
stock
 Contributions from
noncontrolling interest     –            –            62.2         –
owners
 Purchases of
noncontrolling ownership    –            –            (7.2)        –
interests
Proceeds from stock option
exercises, net of tax
payments from stock         1.3          1.9          31.3         12.3
compensation plan
transactions
Excess tax benefits from
employee stock              0.5          1.6          9.4          11.1
compensation plan
transactions
Principal payments on       (5.1)        (3.1)        (18.1)       (11.3)
capital leases
  Net cash provided
by (used for) financing     (230.5)      (12.4)       (666.9)      444.8
activities
Effect of translation on    (14.0)       0.5          (25.7)       1.8
cash
Increase in cash and cash   555.9        195.1        627.1        286.9
equivalents
Cash and cash equivalents,  1,257.0      990.7        1,185.8      898.9
beginning of period
Cash and cash equivalents,  $ 1,812.9   $  1,185.8  $ 1,812.9   $ 1,185.8
end of period





Cameron

Orders and Backlog

($ millions)
Orders
                            Three Months        Twelve Months

                            Ended December 31,  Ended December 31,
                            2013      2012      2013            2012
Drilling & Production       $       $       $   8,665.4  $   7,326.8
Systems                     2,214.6  2,544.5
Valves & Measurement        526.0     540.7     2,085.6         2,104.3
Process & Compression       604.0     358.0     1,603.6         1,455.6
Systems
 Total        $       $       $  12,354.6   $  10,886.7
                            3,344.6  3,443.2
Backlog
                                                December 31,    December 31,

                                                2013            2012
Drilling & Production Systems                   $          $     
                                                9,451.4        6,576.4
Valves & Measurement                            1,017.4         1,051.0
Process & Compression Systems                   1,068.8         969.8
 Total                                       $           $     
                                                11,537.6       8,597.2



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)
                                 Three Months Ended December 31, 2013
                     Drilling &  Valves &      Process &
                     Production  Measurements  Compression   Corporate  Total
                     Systems                   Systems
Income (loss)        $       $  104.0    $    63.3  $         $ 
before income taxes  256.4                                   (108.0)   315.7
Depreciation &       62.3        10.1          9.7           8.9        91.0
amortization
Interest, net        –           –             –             25.8       25.8
Other costs          –           –             –             12.4       12.4
EBITDA, excluding    $       $  114.1    $    73.0  $        $ 
other costs          318.7                                   (60.9)    444.9
                                 Three Months Ended December 31, 2012
                     Drilling &  Valves &      Process &
                     Production  Measurements  Compression   Corporate  Total
                     Systems                   Systems
Income (loss)        $       $  116.5    $    67.9  $         $ 
before 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



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)
                                Twelve Months Ended December 31, 2013
                    Drilling &  Valves &       Process &
                    Production  Measurements   Compression  Corporate  Total
                    Systems                    Systems
Income (loss)       $                                   $         $  
before income       822.6       $  424.2     $   142.8  (437.1)   952.5
taxes
Depreciation &      207.2       39.6           36.1         31.6       314.5
amortization
Interest, net       –           –              –            100.2      100.2
Other costs         –           –              –            92.7       92.7
EBITDA, excluding   $         $  463.8     $   178.9  $         $ 
other costs         1,029.8                                (212.6)   1,459.9
                                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



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions, except per share amounts)
                                          Three Months Ended December 31, 2013
                                          After Tax^(1)     Diluted EPS^(2)
Net income attributable to Cameron, as    $   220.9      $      0.95
reported
Adjustments:
 Acquisition and OneSubsea formation   3.1
and integration costs
 BOP litigation costs                  1.1
Mark-to-market impact on currency
derivatives not designated as accounting  (0.2)
hedges
 Severance, restructuring and other    7.3
costs
 Net income attributable to    $   232.2      $      1.00
Cameron, excluding charges
^(1) Individual adjustments assume a 23.0% effective tax rate
^(2) Based on 232.6 million diluted shares
                                          Three Months Ended December 31, 2012
                                          After Tax^(1)     Diluted EPS^(2)
Net income attributable to Cameron, as    $   218.3      $      0.88
reported
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
 OneSubsea formation costs             2.2
 Severance, restructuring and other    0.1
costs
 Net income attributable to    $   235.6      $      0.95
Cameron, excluding charges
^(1) Individual adjustments assume a 20.2% effective tax rate
^(2) Based on 248.4 million diluted shares



SOURCE Cameron

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